Dell Displaces Compaq As #1 PC Vendor

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Direct PC marketer Dell last year nudged Compaq out of the number-one spot in U.S. PC computer shipments by grabbing a 16 percent share to Compaq's 15.7 percent, according to a new Dataquest report.

The San Jose, Calif., research firm indicated that Dell's unit shipments hit 7.02 million in 1999, up 52.8 percent from 1998. Compaq also posted double-digit growth by shipping 6.9 million units, up 18 percent.

Gateway was a distant third on Dataquest's list with a 9.1 percent share, followed by Hewlett-Packard, 8.7 percent, IBM, 7.2 percent, and Apple, 4.4 percent. HP displaced IBM, which pulled out of the retail PC market in the latter half of 1999, for the fourth spot.

Dataquest is projecting that PC market growth will slow down in 2000. PC analyst Charles Smulders said for the industry to keep from losing too much ground it must convince consumers to upgrade their older PCs and roll out smaller, less-expensive business computers.


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