SAN JOSE, Calif., October 17, 2002 Worldwide PC shipments in the third quarter of 2002 increased 5.8 percent from the same period last year, but there were still few signs of industry improvement, according to preliminary results from Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). While the industry did grow, Gartner Dataquest analysts pointed out that during the third quarter of last year the PC industry was impacted by the Sept. 11 attacks.
"In the third quarter last year, the worldwide market declined 12.4 percent compared to the previous year, in part because of the shipment stoppages immediately following the terrorist attacks of Sept. 11," said Charles Smulders, vice president of Gartner Dataquest's Computing Platforms Worldwide group. "Therefore, in the third quarter of 2002, year-on-year growth rates artificially inflate the true shipment picture."
Despite difficult market conditions, Dell's worldwide PC shipments grew 20.7 percent in the third quarter of 2002, and its market share in the United States reached 28.9 percent (see Table 1 and Table 2). Hewlett-Packard showed some improvement in the third quarter of 2002, arresting the pace of decline the combined companies had experienced in previous quarters.
Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 3Q02 (Thousands of Units)
| Company |
3Q02 Shipments |
3Q02 Market Share (%) |
3Q01 Shipments |
3Q01 Market Share (%) |
Growth (%) |
| Dell |
5,072.7 |
15.8 |
4,201.1 |
13.8 |
20.7 |
| Hewlett-Packard |
5,044.5 |
15.7 |
5,205.5 |
17.1 |
-3.1 |
| IBM |
1,965.6 |
6.1 |
1,985.1 |
6.5 |
-1.0 |
| Toshiba |
1042.8 |
3.2 |
866.2 |
2.8 |
20.4 |
| NEC |
1040.7 |
3.2 |
968.5 |
3.2 |
7.5 |
| Others |
18,010.3 |
56.0 |
17,194.2 |
56.5 |
4.7 |
| Total |
32,176.5 |
100.0 |
30,420.6 |
100.0 |
5.8 |
"Dell grew in most regions, but the market share gains were particularly strong in the U.S. market," said Todd Kort, principal analyst for Gartner Dataquest's Computing Platforms Worldwide group. "In the U.S. market, Dell showed significant growth in the home market, fueled by a series of sales promotions targeting consumers.
"HP is still managing the integration of Compaq, especially outside of the United States. For example, in Germany, HP and Compaq will not become a single legal entity until November 2002," Kort said. "At this stage in the merger process, HP's performance in the third quarter is encouraging."
Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 3Q02 (Thousands of Units)
| Company |
3Q02 Shipments |
3Q02 Market Share (%) |
3Q01 Shipments |
3Q01 Market Share (%) |
Growth (%) |
| Dell |
3,432.9 |
28.9 |
2,731.3 |
25.0 |
25.7 |
| Hewlett-Packard |
2,279.3 |
19.2 |
2,316.3 |
21.2 |
-1.6 |
| Gateway |
729.0 |
6.1 |
818.1 |
7.5 |
-10.9 |
| IBM |
651.8 |
5.5 |
688.3 |
6.3 |
-5.3 |
| Apple |
465.6 |
3.9 |
488.0 |
4.5 |
-4.6 |
| Others |
4,329.9 |
36.4 |
3,901.5 |
35.7 |
11.0 |
| Total |
11,888.5 |
100.0 |
10,943.5 |
100.0 |
8.6 |
Economic conditions continue to dissuade many corporations from replacing PCs, despite an increasing need to do so as pre-Y2K machines come to the end of their life cycle. Were this a growth-orientated economic environment, Gartner Dataquest analysts said the replacement cycle would have begun this quarter.
"However, in the current environment, and with no economic upturn expected until the first quarter of 2003 at the earliest, this is unlikely to happen until the middle of next year," Smulders said. "In the meantime, organizations will have to bear the cost of maintaining older machines and the risk of lower productivity."
On a regional basis, the United States, Europe, the Middle East and Africa (EMEA), and Asia/Pacific all exhibited single-digit growth during the quarter, while Latin America and Japan had decline in shipments.
Additional information is available in the Gartner Dataquest Perspective "3Q02 PC Market Results: Little Sign of Improvement," which provides an overview of the worldwide market for the third quarter of 2002.
These results are preliminary. Final statistics will be available soon to clients of Gartner Dataquest's PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe. To subscribe to this program, please call 408-468-8000. Additional research can be found on Gartner's Hardware and Systems Focus Area on Gartner's Web site at
http://www.gartner.com/pages/section.php.id.2026.s.8.jsp.
Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.
About Gartner
Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients understand technology and drive business growth. Gartner's businesses consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. Fiscal 2001 revenue totaled $963 million. For more information, visit www.gartner.com.
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