Dell Gains Market Share In First Quarter - InformationWeek

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Dell Gains Market Share In First Quarter

Direct PC king Dell Computer reported strong first-quarterearnings yesterday. Dell reported that its revenue for thefirst quarter rose 41%, to $5.537 billion from $3.92 billionin the same period a year ago. Net income rose 42%, to $434million from $305 million last year.

Dell led all major competitors in unit, revenue, and profitgrowth during the quarter. According to Dataquest, Dell'sworldwide market share position rose to No. 2 during thequarter, exceeding that of IBM and behind only that ofindustry leader Compaq. While Compaq has the largest marketshare, its 10% annual growth rate is about four times lowerthan Dell's.

Sales through the company's Dell.com Web site, which averaged$4 million per day a year ago, surpassed $18 million per dayduring the quarter, accounting for 30% of overall revenue.The percentage of Dell's revenue coming from desktopcomputers declined to 61% in the first quarter, from 66% ayear ago. The percentage of revenue coming from enterprisesystems--comprising network servers, workstations, andstorage products--rose to 16% from 11%. Enterprise systemsales surged 97% from last year. Dell gained 13/16 to closeat 44-1/16 before disclosing the quarterly report.

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