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Computer industry

PC Sales Surge Despite Y2K Concerns

Strategic Insights

— 1 min read

Personal computer sales worldwide surged 22 percent last year, despite fears that the Y2K problem would slow down the industry. In the United States, Dell Computer Corp. overtook Compaq Computer Corp. in annual sales for the first time, with Dell grabbing a 16 percent share of the U.S. market. Compaq, however, continues to hold a commanding lead for global sales, with a 13 percent share of the international market to Dell's 10 percent. Analysts attribute the surge in sales to relatively low computer prices, rebate offers, and product redesigns that helped overcome Y2K-related slowness.

Key Takeaways:

  • Dell Computer Corp. surpassed Compaq Computer Corp. in annual U.S. sales for the first time, with a 16 percent share of the market.
  • Compaq, however, continues to hold a commanding lead for global sales, with a 13 percent share of the international market to Dell's 10 percent.
  • Worldwide PC shipments rose 21.7 percent to 113.5 million units in 1999, according to Dataquest.
  • IDC reported a slightly different estimate, putting global PC sales up 23.3 percent to 112.7 million.
  • Direct seller Gateway rose to the No. 3 spot domestically, with sales increasing 32 percent to boost its percentage of the U.S. market to 9.1 percent.
  • Hewlett-Packard's domestic share rose to 8.7 percent from 7.5 percent, giving it fourth place.

Statistics:

  • Worldwide PC shipments rose 21.7 percent to 113.5 million units in 1999 (Dataquest).
  • IDC reported a slightly different estimate, putting global PC sales up 23.3 percent to 112.7 million.
  • Dell grabbed a 16 percent share of the U.S. market, up from 12.7 percent in 1998 (Dataquest).
  • Compaq took a 15.7 percent market share, down from 16.1 percent a year earlier (Dataquest).
  • Gateway rose to the No. 3 spot domestically, with sales increasing 32 percent to boost its percentage of the U.S. market to 9.1 percent.

Sources:

  • Dataquest
  • International Data Corp. (IDC)
  • Compaq Computer Corp.
  • Dell Computer Corp.
  • Gateway
  • Hewlett-Packard
  • IBM Corp.

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