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IBM, HP top retail PC sales

Compaq slips as about half of retail desktop PC sales in September were sub-$1,000 systems, according to a report.

About half of all retail desktop PC sales were in the sub-$1,000 category last month as IBM and Hewlett-Packard knocked Compaq out of the No. 1 ranking in that market segment, according to a new study from ZD Market Intelligence.

About 48.5 percent of all

PC Market Share in U.S. Retail Desktop PCs
Vendor Aug. '98 % Sept. '98 %
HP 26.7 32.5
Compaq 33.5 24.2
IBM 12.9 17.3
Packard Bell NEC 9.1 10.0
Apple 6.6 4.4
Source: Computer Intelligence
retail desktop computers sold cost less than $1,000, slightly more than August's share of 47.3 percent, according to ZD Market Intelligence's Matt Sargent. In September of 1997, sub-$1,000s made up only 27.4 percent of the retail desktop market.

Strong campaigns by HP and IBM have put them in the No. 1 and 2 rankings, respectively, within the sub-$1,000 retail desktop market, Sargent said.

Compaq, however, was No. 2 overall in desktop sales in September (see chart): HP was No. 1 and IBM was No. 3 overall. Interestingly, Apple Computer was off from the previous month dropping to 4.4 percent from 6.6 percent.

In the total market--desktop and notebook PCs--Compaq is still the leader with about a 26 percent share.

"HP and IBM were both very See special report: 
Online PC buying a daunting task aggressive when it came to releasing models based on the Advanced Micro Devices (AMD) K6-2 chip. Compaq, on the other hand, was somewhat tentative and has only recently come out with an AMD K6-2-[based system], and only in small volumes," Sargent stated.

HP has come on strong in the last few months. HP had the top selling consumer PC in August, according to market researchers.

In the processor world, AMD's K6-2 was the most popular, he said, followed by the Intel Pentium II and Celeron chips.

The AMD K6-2 was the leading choice among retail desktop shoppers with 35.8 percent share in September, Sargent said. The Intel Pentium II and Intel Celeron followed with 28.2 percent and 9.6 percent respectively.

"AMD's dominance becomes even more striking when you look at PCs priced under $1,000. Within this segment AMD made up 68 percent of sales with Intel making up 16.2 percent and Cyrix making up 15.6 percent. The AMD K6-2 is clearly a winner," Sargent said.

However, it is important to note that Intel chips overall were still the most popular. The Intel Pentium II and Celeron combined had the largest share at about 38 percent.