PC Industry Consolidation Slows Despite Growth by Dell and HP

The PC industry's top five companies have seen a slowdown in market share consolidation in 1999, with the top five accounting for 55.5 percent of global PC shipments, a slight increase from 55.2 percent in 1998. This slowdown is attributed to the introduction of low-cost PCs and Apple's iMac, as well as troubles at the top companies, including Compaq, IBM, and Packard Bell/NEC. Despite this, Dell has continued to show strong growth, finishing the year as the No. 1 U.S. vendor with 16.8 percent share.

Key Takeaways:

• The top five PC companies accounted for 55.5 percent of global PC shipments in 1999, a slight increase from 55.2 percent in 1998.
• The introduction of low-cost PCs and Apple's iMac has contributed to the shift in market share.
• Compaq lost corporate business to Dell, while IBM pulled its consumer line out of retail stores and sold it online due to sagging sales.
• Packard Bell/NEC has been hurt by quality problems, affecting its commercial and consumer PC businesses.
• Dell continued to show strong growth, finishing the year with 16.8 percent share and a 56 percent increase in shipments from 1998.
• HP shipments grew 40 percent, while Apple's 5 percent market share in 1999 threatens to replace IBM in the top five U.S. vendors.
• Worldwide, Compaq retained its lead with 14 percent share, followed by Dell, IBM, HP, and Packard Bell/NEC.

Statistics:

• Global PC shipments accounted for 55.5 percent by the top five companies in 1999.
• 55.2 percent of global PC shipments were accounted for by the top five companies in 1998.
• Dell had a 16.8 percent market share in the U.S. in 1999.
• HP shipments grew by 40 percent in 1999.
• Apple's 5 percent market share in 1999 threatens to replace IBM in the top five U.S. vendors.
• Compaq retained its lead with 14 percent share worldwide in 1999.

Sources:

• International Data Corp. report
• Interview with IDC analyst John Brown