Dell knocked Compaq off the number-one spot in the US PC market in the third quarter of this year, the latest figures from market researcher Dataquest have revealed.
The direct PC vendor's market share surged to 17.1 per cent, from 13.4 per cent a year earlier compared to Compaq's 15.3 per cent - 15 per cent a year before.
Charles Smulders, principal analyst for Dataquest's worldwide PC research programme, commented: "Dell reached a significant milestone in its history for the first time, replacing Compaq as the number one vendor in the US market.
"Slower growth rates from the traditionally indirect vendors Compaq, Hewlett-Packard and IBM point towards a renewed focus on profitability rather than market share at any cost. These companies still have considerable work to do to meet their supply chain efficiency goals across all products."
Gateway finished the quarter in third place, with 9.3 per cent market share, pushing HP into fourth place with 8.2 per cent of US market share.
Smulders said the PC market environment in the third quarter of 1999 was notable for two reasons.
"First, the market experienced significant Dram price rises during the quarter. The effects were most clearly described by Dell, but will be felt by all PC vendors in terms of margins. "Clearly a business environment where component prices rise does not fit the high velocity business model used in the PC industry," he said.
Secondly, Smulders said that both Dell and Gateway are continuing to move to what he described as a "next generation PC economic model".
He added: "High inventory turns are simply an entry requirement and the focus becomes driving down the cost per sale as a percentage of the revenue achieved." He said Gateway's partnership with AOL is an example of a vendor moving towards this next generation model.
IBM and Technical University of Munich team demonstrate how Shor's algorithm, which can't be cracked by conventional computers, can be solved quickly with quantum computing
Hubble Space Telescope finds superflares from young red dwarfs could strip away planetary atmosphere
Younger stars are 100 to 1,000 times more energetic than when they're older
Two of the big four supermarkets will use the system to control sales of restricted products
PUBG news and updates: November's Update #23 to bring new Skorpion pistol and changes to blue zone visibility
Genuinely useful side-arm coming to PUBG in Update #23