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Big PC makers get bigger
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October 27, 1997: 11:20 a.m. ET
Compaq, Dell and HP make strongest gains, Dataquest survey shows
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NEW YORK (CNNfn) - Compaq Computer Corp., Dell Computer Corp. and Hewlett Packard Co. emerged as the winners in third-quarter computer sales, a survey by Dataquest Inc. shows.
The survey results, released Monday, indicate Compaq's (CPQ) U.S. market share increased to 19.9 percent from 14.4 percent a year ago. The company, which is the world's largest PC maker, saw its shipments increase 56 percent from the third quarter of 1996.
Dell (DELL) shipments rose 60 percent and its market share was up to 9.7 percent from 7.1 percent, while Hewlett Packard (HWP) made a 67 percent gain in its third-quarter shipments. Its market share went from 5 percent to 7.1 percent..
Dataquest said, however, those gains came at the expense of smaller PC sellers.
"The war between Compaq and Dell is creating many casualties in the vendor segment," said Charles Smulder, senior industry analyst at Dataquest.
"Compaq and Dell are not taking share from each other. Their individual gains are at the expense of most of the other PC manufacturers, with the possible exception of a resurgent Hewlett-Packard."
To illustrate that point, Dataquest said that the top tier of PC vendors, including Compaq and Dell, accounted for nearly 60 percent of all U.S. shipments for the quarter.
Overall, the worldwide and United States personal computer markets continued a steady stream of growth.
In the third quarter, global PC sales increased 16.2 percent while the U.S. market grew 22 percent over the same period a year ago.
The news wasn't positive for everybody. IBM shipments grew a more modest 11 percent, Datatquest said. At the current pace, Compaq and Dell soon could overtake Big Blue in shipments.
Packard Bell-NEC Inc. lost ground during the third quarter, seeing their shipments decline 7.6 percent.
-- by staff writer Randy Schultz
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Dataquest
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