Dell takes number one spot in worldwide PC sales

Market research from both IDC and Dataquest name Dell as the number one player in the worldwide PC market. Vendor also builds on leadership position in US market. Analysts say aggressive pricing strategy and flexible supply chain are key factors in Dell’s success.

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By  Greg Wilson Published  April 23, 2001

Dell has snatched the number one spot for worldwide PC sales away from archrival Compaq. According to research published by IDC, Dell strengthened its leadership position in the US market and grasped 13.1% of the worldwide PC market in the first quarter of 2001.
Compaq could only win 11.9% market share for the same period.

Other preliminary research from Dataquest mirrored IDC’s findings. Dataquest’s research indicates the fight for market share is a little tighter, with Dell taking 12.8% of the worldwide PC market share, compared to Compaq’s 12.1%.

Both research bodies attributed Dell’s success to its aggressive pricing strategy and flexible supply chain, which enabled the champ of direct selling to pass on the benefits of falling component prices to its customers.

Dell’s local office is also looking to capture greater market share from the dominant local player — namely Compaq. Partnering with recently appointed Dell Authorised Service Provider (DASP), Emirates Computers, Dell is looking to build its market share in the notebook arena with strong pricing promotions on the e-Technoworld web site.

“We’re slashing the prices on the Pentium III 850 MHz and soon a 1 GHz machines,” says Emirates Computers’ president & CEO, Hani Harik. “The prices have been slashed by Dell in an effort to capture notebook market share,” he adds.

However, both Dell and Emirates Computers are still faced with the challenge of building a pan-Gulf online business, which is sensitive to the hardware vendor’s other local partner agreements.

According to Harik, Emirates Computers is working to build a pan-Gulf logistics chain, which leverages on Dell’s other partners in the Middle East for fulfilment and support. “The idea is to make the Dell name pervasive in the region, while keeping the whole network of dealers in the region happy and cohesive,” Harik explains.

No further details were available at the present time.

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