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Dell retakes title of biggest PC-maker as PC sales grow

Dell Computer Corp surpassed Hewlett-Packard Co to again become the world's biggest personal-computer maker as global PC sales rose after five straight quarters of decline, research firm IDC said.

Dell had 16 percent of the market in the third quarter, up from 13.5 percent a year earlier, IDC said in a statement. Hewlett-Packard, which gained the title in May after buying Compaq Computer Corp, slipped to 15.5 percent from 16.9 percent.

Computer makers shipped 32.6 million units, a 3.8 percent increase from a year earlier, as spending by businesses and consumers increased, Framingham, Massachusetts-based IDC said.

Dell gained by targeting consumers with an "aggressive" advertising campaign, IDC analyst Loren Loverde said.

"Dell has been gaining share consistently when the market has been down," Loverde said. "H-P was down significantly because of merger related issues." Dell shares rose 97 cents, or 3.6 percent, to US$27.99 at 2:02pm on the Nasdaq Stock Market. Hewlett-Packard shares fell 6 cents to US$12.88 on the New York Stock Exchange.

Dell's strategy of selling directly to consumers has benefited from a trend toward standardized products and services, Chief Executive Michael Dell said in a statement. The company declined further comment.

Hewlett-Packard is making progress in managing inventory, employees and clients after the purchase of Compaq, said Loverde.

The acquisition closed on May 3. The company shipped 5.04 million PCs in the third quarter, a sequential increase over the second quarter's 4.69 million.

"We're in a virtual dead heat" with Dell, said Hewlett-Packard spokeswoman Rebeca Robboy. "HP's PC business is back on the growth track less than six months after the merger."

Dell President Kevin Rollins predicted in April that his company would reclaim the title about two quarters after Hewlett-Packard bought Compaq.
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