Dell PC Sales Surge in Q2 1999, Lags Behind Compaq

Strategic Insights -

Despite a remarkable 50.3% increase in PC shipments, Dell Computer Corp. failed to surpass Compaq Computer Corp. as the world's best-selling PC maker in the second quarter of 1999. According to a report by Dataquest Inc., Dell's sales growth was the fastest among major computer makers, but Compaq's sales still outpaced the Texas-based company by over a million units. The report highlighted the intense competition in the PC market, with IBM Corp. posting a 47% increase in worldwide sales and Hewlett-Packard Co. and Gateway Inc. also experiencing significant growth.

Key Takeaways:

  • Dell's worldwide PC shipments grew by 50.3 percent in the second quarter of 1999, making it the fastest-growing major computer maker.
  • Compaq's sales grew by 32.9 percent, with the Houston-based company shipping almost 3.5 million computers.
  • IBM's worldwide sales increased by 47 percent, while Hewlett-Packard Co.'s sales grew by 37.7 percent.
  • Gateway Inc.'s shipments grew by 36.2 percent, making it the fifth-largest PC maker in terms of units shipped.
  • Worldwide PC shipments grew by 26.4 percent in the second quarter of 1999, driven by lower prices, economic recovery in the Far East, and the growth of the Internet.

Statistics:

  • Dell's PC shipments in the second quarter of 1999: 2,586,000 units (up 50.3% from the previous year)
  • Compaq's PC shipments in the second quarter of 1999: 3,499,000 units (up 32.9% from the previous year)
  • IBM's PC shipments in the second quarter of 1999: 2,229,000 units (up 47.1% from the previous year)
  • Worldwide PC shipments growth rate in the second quarter of 1999: 26.4%

Sources:

  • Dataquest Inc. report (no date)
  • [Omar L. Gallaga, statesman.com](mailto:ogallaga@statesman.com)
  • "Dataquest Inc."