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10/19/2006
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HP Passes Dell As Top PC Maker Worldwide

The market share loss could be a bitter pill for Dell, which also lost share in the United States during the third quarter.

Hewlett-Packard, one of the few major PC companies to face no major battery recall issues, overshot rival Dell to reclaim the number 1 position in worldwide PC market share during the third quarter, according to research firms Gartner Group and IDC.

Both firms said Dell's market share declined in both the U.S. and worldwide, during a third quarter in which the Round Rock, Tex.-based computer maker fought news of investigations into its finances, declining revenue growth, and a massive, 4.1 million-unit recall of Sony batteries for its laptops that carried a risk of overheating and bursting into flames.

The market share loss could be a bitter pill for Dell, which has made its position as the Number 1 PC maker the exclamation point on its claims that the direct-to-market sales model is superior to competition.

"We are delighted to have reclaimed the No. 1 share position in a period where we also achieved profitability and revenue milestones for the business," Todd Bradley, HP's executive vice president, Personal Systems Group, said in a statement.

Worldwide, according to IDC, Framingham, Mass., HP shipped 9,831,000 PCs to 9,803,000 shipped by Dell. In the U.S., Dell still maintained market leadership but lost significant share. Here, Dell maintained a 31 percent market share to HP's 22 percent, Gateway's six percent, Apple's 5.8 percent and Toshiba's 4.2 percent.

Gartner Group, Stamford, Conn., also gave the top worldwide market share slot to HP over Dell, by 16.3 percent to 16.1 percent. In the U.S., Dell led HP by 32.1 percent to 23 percent, followed by Gateway at 6.4 percent, Apple at 6.1 percent and Toshiba at 5.1 percent, Gartner said.

Both research firms, though, said HP gained share in the U.S. while Dell lost share during the third quarter with Dell seeing negative growth in PC shipments in the U.S.

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