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July 19th, 2007, 06:31 GMT · By Alexandru Pancescu

Dell Turns Green with Envy

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Dell loses market shares to HP
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Most major PC vendors reported an increase in PC shipments all across the world, except Dell that loses market shares, as it shipped 4.9 percent fewer PCs during these last months as it did in the same years period in 2006. Well, Dell is known for its unexciting boxes, some lines of Linux PCs and a supply chain shot to ribbons, so this doesn't come
exactly as a big surprise.

In the meantime, Dell struggles to do an "on the fly" rebuild of the company that included deep job cuts, changes of several key executives and a new strategy of selling computer systems online and through retail channels. In contrast with Dell, another PC vendor, HP consolidated its market position as the world's largest system integrator and vendor. A report released by Gartner and cited by the news site InfoWorld, showed similar results with Dell sliding 5.5 percent compared to HP's growth of 36.6 percent. Gartner reported that global PC shipments rose 11.7 percent to 61.1 million units.

As Dell is just beginning its struggle to retake the top position on the PC market, HP, thanks to its new approach to concentrate sales in a new region if one region is being supra saturated, is seeing very good results indeed. "They are not putting all their eggs in a single basket," he said. "That is the result for a company that has adopted a multifaceted approach. PC shipments were slightly better than expected in the U.S., but they have done even better outside the U.S. in emerging markets and western Europe. So they can manage multiple regions."

Of all important PC integrators and vendors, Acer is the one that may climb a little higher to the top, as that company improved its PC shipment volume by 55.4 percent, pulling very close to Lenovo. In the U.S., Acer is not even in the Top 5 of major PC vendors, but that situation may soon change if the company continues its present trend.
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