Dell and HP tie for first place in 2006 shipment race

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HP outpaced its competitors like for like in PC shipments for the final quarter of last year, but it will have to settle for joint place with Dell for overall leader in 2006, according to paramilitary figures from analyst Gartner.

Leading vendors aside, overall worldwide demand for PCs grew by 7.4 per cent year-on-year in the last quarter of 2006, with shipments totaling 67.3 units.

The findings will prove music to HP's ears as they mark the second consecutive quarter that the computer giant has been crowned king of the global PC market in terms of global PC shipments.

During the quarter, HP trumped the previous successful quarter by increasing shifting an additional 23.9 per cent, bringing its total mark share to 17.4 per cent.

While Dell maintained its runner up position for the quarter, its shipments actually declined by 8.7 per cent, leaving it with 13.9 per cent of the market not ear-marked by HP.

But, with 15.9 per cent of the market each, both companies encountered a virtual tie for top spot when it came to shipment market share for the whole of 2006.

"PC price erosion was a defining feature of the quarter," said Mikako Kitagawa, principal analyst for Gartner Dataquest's Client Computing Markets Group.

"In the consumer market, the PC industry battled for wallet share against other consumer electronics products, such as games consoles and flat panel TVs, while at the same time cutting prices to ensure market demand did not stall prior to Microsoft's Vista consumer launch in January."

Referencing Dell's less-than-positive quarter, Kitagawa said: "Dell's market share was its lowest in four years. It lost market share across all segments in the US, particularly the home market. The fourth quarter's consumer bias favors HP, however Dell's accelerated shipment decline in the fourth quarter is surprising."

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