Dell’s retail strategy to distribute PCs is starting to show results, helping extend its lead over Hewlett-Packard (HP) as the largest U.S. PC vendor in the fourth quarter of 2007, according to figures from analyst firms Gartner and IDC.
However, HP remained the world’s largest PC dealer, topping Dell, Acer and Lenovo, according to figures from both firms.
Dell shipped 5.5 million units in the U.S., a 15.2 per cent year-over-year increase and a 29.6 per cent market share, according to IDC. HP, in second place, shipped 4.5 million units, a 9.8 per cent year-over-year increase and a 24.3 per cent market share. Acer, in third place, showed tremendous growth in the U.S., with shipments increasing 294.2 per cent to 1.5 million units. Apple’s shipments grew 30.9 per cent to 1.06 million, a 5.7 per cent market share. Toshiba was in fifth place, IDC said.
Gartner reported that Dell shipped 5.35 million units, with a 31.4 per cent market share during the fourth quarter, compared to the 29.3 per cent market share it had last year. HP shipped 4.4 million units, with market share growing to 26.1 per cent from 25.5 per cent last year. Acer and Apple were in third and fourth places, respectively.
Dell’s switch from a direct sales model to selling PCs through retailers like Best Buy and Wal-Mart is paying off and has helped the company improve shipments, said David Daoud, an analyst with IDC. “They’re coming out of nowhere to everywhere,” Daoud said.
However, Dell is trying to catch up internationally with HP, which is investing more in distribution channels and understands business behavior in emerging markets better, Daoud said.
According to IDC, HP shipped 14.7 million units worldwide, a 23.3 per cent year-over-year growth and a 19 per cent market share. Dell was in second place, shipping 11.3 million units with a 14.6 global market share, a 17.1 per cent rise from the previous year. Acer saw a sharp rise, with shipments growing 60.3 per cent year-over-year to 7.4 million. Lenovo came in fourth, shipping 5.8 million units, a 22.3 per cent year-over-year increase. Toshiba was in fifth place.