Compaq Retains Top Spot in U.S. and Worldwide PC Shipments for 4Q98 and 1998

Strategic Insights -

The fourth quarter of 1998 proved to be a strong finish to the year, with worldwide PC shipments reaching 27.3 million units, representing a year-over-year growth of 15% and a sequential growth of 23%. The U.S. market remained solid, driven by corporate upgrades, new consumers entering the market, and the release of popular consumer products such as Windows 98 and Apple's iMac. Western Europe also sustained momentum, with shipment rates increasing in the fourth quarter due to strong consumer sales.

Key Takeaways:

  • Compaq retained the number-one position in both the U.S. and worldwide PC shipments for 4Q98 and 1998, driven by strong demand for its consumer lines.
  • Dell made significant gains, moving into a clear second place behind Compaq in the U.S. market and halving its rival's lead.
  • Gateway made big share gains in the U.S. market, moving from number six in 1997 to number three in 1998, and edged out IBM in the U.S. market.
  • Hewlett-Packard did well in its consumer division in 1998 but struggled with profitability in the PC division.
  • Packard Bell NEC managed to hold onto the number five rank worldwide but declined in growth and share based on flat growth in its U.S. consumer business and a continued difficulty getting traction with its commercial NEC CSD brand.
  • The top five U.S. OEMs improved their collective market share by almost 6% in 1998, with Dell and Gateway climbing the fastest.
  • The top five worldwide for 1998 gained nearly 3% more share than they held in 1997.

Statistics:

  • Worldwide PC shipments reached 27.3 million units in 4Q98.
  • The U.S. market saw a year-over-year growth of 12% in 1998, with total shipments reaching 80.3 million units.
  • Western Europe sustained momentum, with shipment rates increasing in the fourth quarter due to strong consumer sales.
  • The top five U.S. OEMs improved their collective market share by almost 6% in 1998.
  • The top five worldwide for 1998 gained nearly 3% more share than they held in 1997.
  • Compaq retained the number-one position in the U.S. and worldwide PC shipments for 4Q98 and 1998, with 12.4 million units and 18.3 million units, respectively.

Sources:

  • International Data Corp. (IDC)
  • Top 5 Vendors, U.S. PC Factory Shipments, Fourth Quarter 1998 (Preliminary) Year over Year Comparison (Thousands of Units) Source: International Data Corporation, 1999
  • Top 5 Vendors, Worldwide PC Factory Shipments, Fourth Quarter 1998 (Preliminary) Year over Year Comparison (Thousands of Units) Source: International Data Corporation, 1999
  • Top 5 Vendors, U.S. PC Factory Shipments, Full Year 1998 (Preliminary) Year over Year Comparison (Thousands of Units) Source: International Data Corporation, 1999
  • Top 5 Vendors, Worldwide PC Factory Shipments, Full Year 1998 (Preliminary) Year over Year Comparison (Thousands of Units) Source: International Data Corporation, 1999
  • International Data Group (IDG)