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Michael Dell, Dell CEO
Apple comes in fourth in U.S. shipments

With consumers not spending money, sales of PCs and other electronics are nearing their lowest points ever. Despite poor shipments, some categories like netbooks continue to post impressive growth.

The latest shipment numbers from IDC for the U.S. are in and HP has kicked Dell off its perch at the top of the PC shipper list for America. IDC reports that overall global shipments for the quarter were down 7.1% to 63.5 million units shipped.

IDC analyst Bob O'Donnell said in a statement, "HP's dethroning of Dell as the U.S. market share leader and extending its worldwide market share lead is a testament to the company's solid record of business execution over the last several quarters and indicates Dell still faces some challenges in its efforts to reignite its business."

Dell has struggled to turn around as it sheds employees and closes facilities in massive cost cutting measures to help it better compete in the marketplace and become more profitable. IDC reports that the global shipment numbers were better than it had expected. IDC predicted the drop in global PC shipments would be 8.2% from the previous quarter, but the drop was 7.1% according to the firm.

Gartner's numbers for the quarter look a bit different with the drop in global shipments at 6.5% and 67.2 million units shipped. According to both Gartner and IDC, the netbook category is continuing to drive PC sales. The firms both reports that some improvement has been seen in the PC market with inventory levels falling, but Gartner and IDC have different opinions on the impact. IDC reports that it expects production to be stable over the next quarter with Gartner saying the restocking isn’t an indication that consumer demand is improving.

Gartner's George Shiffler said, "We are seeing some evidence of channel inventory restocking, particularly in the United States. This restocking should not be interpreted as a recovery in PC end-user demand; it's still unclear if the global PC market has hit the bottom."

Intel leans more towards the findings of IDC with an announcement this week that it believes the bottom of the market has been reached. The top five PC vendors globally, in order, were HP, Dell, Acer, Lenovo, and Toshiba. In the U.S., the rankings were HP, Dell, Acer, Apple, and Toshiba.

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From what I see of prices...
By Amiga500 on 4/16/2009 10:49:51 AM , Rating: 5
Dell are already cheaper than HP over the majority.

Therefore people are choosing quality over price.

Over to you Dell...

RE: From what I see of prices...
By Chudilo on 4/16/2009 11:01:20 AM , Rating: 1
Yup. Dell has been selling crap as home editions for years and people still buy it up , 'cause don't know any better.

RE: From what I see of prices...
By TMV192 on 4/16/2009 9:04:57 PM , Rating: 3
Dell has really cleaned up since Michael came back a couple years ago, in terms of hardware they have really got off the crap bandwagon and are shooting for high-end non-gamer segments against the likes of Apple and Sony with the launch of the Studio-One, Studio-XPS and Adamo desktops and laptops, but a lot of people, like you, still have that mentality about Dell that along with the slower economy where more people are picking up netbooks and craptops from acer and hp from Best Buy, are what are probably to blame

RE: From what I see of prices...
By drebo on 4/16/2009 11:52:35 AM , Rating: 2
On the business side of things, it's opposite. HP systems are far cheaper than Dells, and of superior quality. As a VAR of both Dell and HP, we've found HPs to be easier to sell, easier to procure, easier to maintain, and cheaper. In the past year, we've migrated completely away from Dell.

RE: From what I see of prices...
By Samus on 4/16/2009 3:31:07 PM , Rating: 2
Most large corporations I know of are entirely HP powered; Servers, workstations, notebooks, switches, etc, simply because the support is better. Initial price is unimportant to most companies when the cost-of-ownership is lower.

RE: From what I see of prices...
By MonkeyPaw on 4/16/2009 12:34:52 PM , Rating: 2
Not to mention that HP has used whatever components are available in their PCs, thus offering greater selection. Remember when Dell refused to sell AMD products, even during the Athlon 64 vs Pentium 4 days? It was heavily argued that, at the time, Dell had made an exclusive deal with Intel for cheap supply, which kept AMD out of the most popular OEM of those days. However, Prescott was such a bust that the exclusive deal eroded Dell's big advantage. By the time Dell got on the K8 bandwagon, HP had already taken most of Dell's lead away (and, ironically, Core 2 Duo launched months later). That's not to say that the AMD deal did it alone, but it appears that HP's open-minded approach might have helped it along. It appears that Dell's business choices did them in.

RE: From what I see of prices...
By abzillah on 4/16/2009 12:53:41 PM , Rating: 1
I am not defending Dell here, I know dell makes crap PCs for the masses, but Dell PCs for business seem to work really well though. Many of my friends who have bought HP PCs have had nothing but trouble with them. From hard drive failure, to the screens not working, to keys breaking off the keypad on laptops.
I say forget both companies, give me a Lenovo anyday.

RE: From what I see of prices...
By invidious on 4/16/2009 2:32:32 PM , Rating: 2
dell is not cheaper, especially not in the laptop market. they may have cheap computers but if you factor in bang for buck dell is way behind.

By inperfectdarkness on 4/16/2009 7:16:01 PM , Rating: 2
gateway is where it's at in the laptop market. if only they would put high-rez screens on their laptops & actually offer decent 15.4" performance options...

RE: From what I see of prices...
By Lifted on 4/16/2009 5:39:05 PM , Rating: 2
With consumers not spending money, sales of PCs and other electronics are nearing their lowest points ever.

So let me get this straight, 63.5 million PC's shipped in 1 quarter is near the lowest point ever?

I'd imagine the lowest point EVER would be much, much less than 63.5 million, perhaps closer to single digits. But that's just me and my wild ideas.

"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
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