Print 24 comment(s) - last by bob661.. on Oct 20 at 7:30 PM

HP edges past Dell in global PC shipments for the third quarter

Dell has been sitting in the driver's seat for PC shipments ever since the fourth quarter of 2003. That all changed during the third quarter of this year as Hewlett-Packard eased into the first place position. According to the latest figures from Gartner Dataquest, HP saw its worldwide shipments climb by 15% to 9.65 million units. Dell, on the other hand, saw its shipments rise by just under 4% to 9.54 million units.

"We are delighted to have reclaimed the number-one share position in a period where we also achieved profitability and revenue milestones," said HP executive CP Todd Bradley.

Analysts point to HP CEO Mark Hurd as the reason behind the company’s change of fortune. Hurd took over for Carly Fiorina in 2005 and has made great strides in trimming HP’s workforce, cuttings costs and boosting revenue.

Dell shares dropped by 6.19% to $23.17 today upon the announcement of the news. Dell depends heavily on its US operations for PC sales and a 7.1% slide in US shipments gave HP an opening. "The rate of growth reflects our efforts to rebalance our execution in areas such as pricing, growth outside the U.S. and improved customer experience," said a spokeswoman for Dell.

An analyst for Banc of America Securities wasn’t so optimistic. "If the company is unable to meet revenue estimates during a robust PC demand environment, how will the company be able to meet expectations during a weaker, slowing growth environment,” wrote Keith Bachman.

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By Targon on 10/20/2006 12:17:34 AM , Rating: 4
The acceptance of AMD based machines in the corporate environment was also a HUGE win, not just for AMD, but for HP since Dell didn't sell AMD based machines until recently. If you think about it, HP selling AMD based machines when Dell refused to sell AMD based machines gave HP the edge.

We will need to see how well Dell does now that they are selling both AMD and Intel based systems. It may be that the general public finally noticed that Dell machines were NOT any better than the competition, and that their quality in the low-end of the market was, and remains horrible.

By OddTSi on 10/20/2006 12:46:56 AM , Rating: 1
Well, I don't see how going with AMD machines will help Dell now that Intel has taken the lead. But I could be wrong, maybe all the AMD-fanboys that hated Dell simply because they were Intel-only will now all of a sudden get a Dell.

By TimberJon on 10/20/2006 1:03:42 AM , Rating: 2
You could get an AMD in an Alienware, so now you can get it at slightly lower prices because Dell is in the picture. If you know someone who is in the IT department from anywhere, and they have a Corporate Dell account, they can get you KILLER prices on those machines..

Theyre not too far off either. Being that close, wouldnt take much to gain the lead. Its neck and neck. Cant wait to see what Dell pulls out of their hat. Mad props to HP though.. they DID come up out of nowhere with the new guy in charge.

By drebo on 10/20/2006 1:26:01 AM , Rating: 5
If you know someone who is in the IT department from anywhere, and they have a Corporate Dell account, they can get you KILLER prices on those machines..

Obviously you know nothing of Dell's corporate pricing and sales strategy.

Unlike you, I actually have a Dell Premier account and am a Dell Authorized reseller. I sell Dells on an almost daily basis. The quality of product purchased through their premier engine is far superior to their retail parts, but with that comes a huge increase in cost. You know those $299 Dells you read about? That same PC configured through the Premier website would be $700 at a minimum.

Why? Because when a company purchases something like a computer, they look at more than just total cost of acquisition. They will pay more for better products and better service. Dell knows this. That's why they offer four year warranties with up to 4-hour onsite response time with some of their corporate machines. We usually provide this option with the PowerEdge servers we sell.

What's more is that I'm usually able to beat the price of a Dell by 10-15% by using a whitebox. But, we warranty our whiteboxes ourselves(at no extra charge, of course) and it's not an onsite warranty. This presents a problem because we have customers covering most of the entire state of California. They can't drive four hours to take a computer into the shop, so they usually pay us to send one of our onsite techs to pick it up...that costs $120+ depending on where you are.

So, while it may cost more initially to get the Dell, the cost of ownership is generally far lower. Granted, we have a lot of local customers who do purchase whiteboxes because it's only a 15-20 minute drive to our location, so it's not difficult for them to use our warranty service.

And contrary to what you might think, "IT guys" for any corporation large enough to employ a full-time IT guy do not build their own computers. It simply is not cost effective. Yes, cost of acquisition is low, but the moment one of them breaks, you've blown your cost of ownership through the roof...not only in the man-hours it takes to repair it, but also the time the employee is out while he waits for an RMA part or you're out the cost of purchasing a new part.

That's why you pay a little more for another company to deal with it for you...and Dell's corporate service, both the Gold Tech Support and the Onsite Warranties, is very good. Good, but definitely not cheap.

By noxipoo on 10/20/2006 9:53:59 AM , Rating: 2
i have a premier account too and those $299 machines do not cost $700. we buy better than those $299 machines for about $500 with 3 year onsite, gold, accidental, blah blah. plus we stopped paying for gold since it is kind of worthless and we are all in dell's warranty parts direct program.

while i agree with you that total cost of ownership is lower overall, not all of them break, if you have enough on-site techs that knows what they are doing, getting hundreds of white boxes might actually save money. we never call dell's tech support, those guys keep you on the phone longer than if we order a replacement part and reimage the machines.

By OddTSi on 10/20/2006 3:07:39 PM , Rating: 2
Theyre not too far off either. Being that close, wouldnt take much to gain the lead. Its neck and neck.

Are you talking about the performance between Intel and AMD chips? If so, what have you been smoking? I'm not saying that it's not possible for AMD to take the lead, it most certainly is, but saying they are neck and neck now is just ridiculous and reeks of AMD-fanboyism.

If you were talking about something other than performance being neck and neck then ignore this post.

By INeedCache on 10/20/2006 5:35:21 AM , Rating: 2
Most people don't care who makes the processor in their computer, as they are buying based on price. This is how Dell gained their market share. HP's resurgence isn't based on the processors they're using, although I grant that HP using AMD chips in their servers has helped their server sales. It's marketing, pricing, and corporate strategy. Dell will sell a lot of those AMD-based machines, as will HP. Most computer users don't know Core 2 Duo from spit. And most buy computers based on price.

By Griswold on 10/20/2006 5:49:10 AM , Rating: 2
Well, I don't see how going with AMD machines will help Dell now that Intel has taken the lead.

Of course, people such as you dont understand the concept of catering to the mass market segment where Joe and Janine Average buy, who dont give a flying fuck about the performance crown. The same is true for corporate office customers - you never needed the fastest computer in existence to do your word processing and spreadsheets.

By noxipoo on 10/20/2006 9:55:14 AM , Rating: 2
yes a lot of corporate buyers look at price only but they also look at parts, don't discount the corporate buyers as stupid or something.

By bob661 on 10/20/2006 7:30:52 PM , Rating: 1
It has nothing to do with stupidity. It has everything to do with it not making a damn bit of difference what's powering the box. Most corporate users do not need a powerhouse machine and both AMD and Intel will do the job for those people. Price and service is king in the corporate environment. For the users that require some horsepower than the performance is important. I'm not going to buy a C2D or Athlon FX box for a secretary. That's a waste. The power machines go to the power users. In my company, the power users get custom built machines because it's more cost effective to buy and easier to tailor the machine to exactly their needs.

By AlexWade on 10/20/2006 8:35:17 AM , Rating: 2
I never recommended a Dell just because Dell didn't give you a choice, until recently. Dell was an extension of Intel. It is all about competition and choice.

HP was willing to ditch Itanium for Opteron. HP had the guts to stand up to Intel, unlike Dell. That is why I recommended HP. Support the brave, the ones that support competition. If it wasn't for AMD's competition, we'd all be stuck with inefficient single-core P4's that Intel would try in vain to get more speed out of. Instead, we have efficient Core 2's with two and soon four cores. I wanted to build a Core 2 computer for myself, but memory problems (only because it is new) scared me away. Competition wins.

On a side note, did anyone notice that after AMD sued Intel that AMD machines started showing up more and more in the marketplace?

By DallasTexas on 10/20/06, Rating: -1
By Targon on 10/20/2006 9:22:45 AM , Rating: 2
Remember the 2.5 years where the Athlon 64 was considered a much better processor than the P4 by many/most in the tech crowd? It took that long for the word to get out, but it did finally start to get around that Intel had competition. Since most end-users just don't know, they look at price, and go by the suggestions given 4-6 months ago for desktop computers.

So, the whole "Dell doesn't make an AMD based computer" really does come into the picture here.

The retail market is also key in this as well. Many people don't like the idea of buying something they can't see before they buy. How does the keyboard feel, or how big is the screen, and where the various connectors are located all play a part. Older customers don't necessarily buy online or over the phone as well, just because they don't trust it. So, as older buyers look to buy computers for the first time(instead of going with an old computer given by a relative), they go retail, and they see HP/Compaq, they see Gateway, they don't see Dell.

Dell also has gotten a bad reputation due to their outsourcing to India. Corporate customers may get decent tech support, but the average customer ends up talking to someone in India, and MANY people here in the USA don't like it. They don't like the idea of outsourcing jobs to other countries. HP has tech support centers located all over the place, and as a result, for an HP desktop computer, tech support has a good chance of being based in either the USA, or Canada.

This is why HP moved ahead of Dell, though we will see what happens this holiday season. Dell may re-take the lead, or HP may hold strong. I know that I prefer HP to Dell for many reasons, and it would take a LOT to convince me that for the average user, Dell is a good choice.

By TheGee on 10/20/2006 9:29:36 AM , Rating: 2
As far as I know Intel has always been in the lead in sales!
Only not (until recently)in horsepower. I don't think being Intel only harmed Dell US sales because joe public couldn't give a toss and corporates like intel anyway (genralisation I know) My organisation has about 10,000 PC units and all HP (compaq) and bloody good they are too! Never seen dell in any business in any quantity here in UK.
Going with AMD certainly won't harm Dell unless Intel have put their unit cost up in spite! Anybody know?

"This is from the It's a science website." -- Rush Limbaugh
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