Dell has overtaken Compaq in the UK PC market for the first time.
According to preliminary figures from research company IDC, in terms of units shipped, Dell raced ahead of Compaq in the UK for the second quarter 1999.
IDC's figures include sales of desktop PCs, notebook PCs and PC servers.
Direct seller Dell now holds an 18.7 per cent share of the UK PC market compared with 15.8 per cent for the same period 1998. Dell's PC sales grew 43.3 per cent growth between Q2 1998 and Q2 1999.
Meanwhile Compaq's market share has slipped to 15.5 per cent, down from 18.7 per cent in the second quarter 1998. Compaq's PC sales increased just 0.6 per cent during the 12 month period.
Andy Brown, research analyst at IDC told VNU Newswire that the main reasons for Compaq's fall from glory in the UK were internal organisational problems and the fact that it upset the UK channel with its move to more direct sales.
"This had an adverse effect on the company's sales," said Brown.
He added that Compaq's notebook line had also done particularly badly.
"There are still questions of quality with its notebooks, growth was flat in this area."
Brown said Dell, along with IBM and Hewlett-Packard had capitalised on Compaq's problems and had all experienced a strong second quarter.
"The UK PC market has turned into a fight between Dell and Compaq, but IBM did very well having sorted out its inventory problems. HP also had a very good quarter," he said.
Although Dell is number one in unit terms, Compaq remains at the top in terms of revenue.
"Compaq is still performing well in the server market," said Brown.
"It remains to be seen whether Dell will hold the unit shipment lead. It all depends on Compaq's restructure, new chief executive Michael Capellas has a lot resting on his head."
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