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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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RE: CEO
By drebo on 10/20/2006 1:26:01 AM , Rating: 5
quote:
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.


RE: CEO
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.


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