Press Release

Dell Continues Computer Comeback in Q3

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After reclaiming its customary second-place ranking in the global PC market in the second quarter, Dell Inc. in the third quarter held on to the No. 2 spot as it capitalized on the relative strength of the corporate PC market, according to the market research firm iSuppli, now part of IHS Inc. (NYSE: IHS).

Dell in the third quarter sold 11.3 million PCs, up 7.2 percent from 10.5 million in the second quarter. This gave the U.S. PC maker a 12.8 percent share of unit shipments, flat from 12.8 percent in the second quarter.

On an annual basis, Dell’s third-quarter PC shipments rose by 9.3 percent compared to the same period in 2009. In contrast, No.3 Acer Inc. suffered a decline of 0.7 percent and No.1 HP experienced a 0.2 percent contraction.

“Dell in the third quarter continued to benefit from the relatively strong performance of the corporate PC market compared to the consumer segment,” said Matthew Wilkins, principal analyst, compute platforms research, for iSuppli. “Consumer PC sales growth slowed in the third quarter partly because back-to-school sales were lower than expected. However, since the second quarter, corporate demand for desktop PCs and entry-level servers has been strong, driven by companies’ efforts to replace systems with newer, faster, more efficient computers. Dell has a higher mix of corporate business to the market than HP and Acer and therefore was less exposed to the consumer slowdown.”

Dell in the second quarter recovered the second-place ranking, which it had lost to Acer nine months earlier.

PC Ranking

PC Recovery Continues
Despite the slowdown in consumer sales, the PC market’s recovery from the dismal conditions of 2009 remained on track in the third quarter of 2010.

Worldwide shipments amounted to 88.1 million units in the third quarter, up 6.7 percent from the second quarter. Shipments increased by 10.3 percent from 79.9 million units in the third quarter of 2009.

While the year-over-year growth rate in the third quarter was more than halved compared to the 22.8 percent increase in the second quarter, the deceleration partly comes from the dynamics of the industry in 2009.

“The second quarter of 2009 was a terrible period for the PC market, but the following three months marked the beginning of the recovery, representing the first quarterly period in 2009 when shipments grew on both a sequential and year-over basis,” Wilkins said. “Because the third quarter of 2009 was stronger, the year-over-year growth rate in the third quarter of 2010 appears weaker than it was during the second quarter of 2010.”

Corporate PC demand in the third quarter was particularly evident in the strong shipments of desktop PCs. Desktop PC shipment sales rose sequentially by 11 percent in the third quarter, compared to only a 4.2 percent increase for notebooks.

ASUSTeK Enters Top 5 Rankings
No. 4-ranked Lenovo Group Ltd. of China delivered another impressive quarter, with shipment growth of 32.9 percent compared to the same period in 2009. This means that during every 2010 quarter, the company has so far achieved year-over shipment growth in excess of 30 percent.

Organic growth in Lenovo’s domestic market of China propelled the company’s shipment growth.

Rounding out the Top 5 rankings in the third quarter was ASUSTeK Computer Inc. of Taiwan. As a result of a sterling performance wherein company PC shipments rose by 29 percent from a year earlier, ASUSTeK moved up the rankings to No. 5 and ahead of Toshiba Corp., which now sits in the sixth position.

Read More > Compute Platforms Witness Strong Q2, but H2 Slowdown Expected

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