Why did Compaq leave the market

economy : The company replaces Compaq as the US market leader

The PC manufacturer Dell Computer Corporation from Dallas overtook the previous market leader Compaq Computer Corporation, Houston, in the sale of personal computers (PC) in the USA in the third quarter. This emerges from calculations by two market research firms. However, Compaq remains number one worldwide. The industry generally experienced a boom in the reporting period, but thanks to an increase of 58 percent in the number of units sold, Dell was able to expand its market share from 14 percent to 18 percent, reported the company International Data Corp (IDC). At Compaq, however, sales rose by 24 percent and Compaq's market share remained constant at around 16 percent. Dell is particularly strong in the business market, while Compaq sells more products to households. As a direct supplier, Dell is also more flexible and works more cost-effectively than Compaq, which sells most of its products through dealers. The fourth quarter will be more difficult for Dell, however, because the Christmas season is considered the consumer quarter, and that is what Compaq said, said analyst Charles Smulders from Dataquest. According to Dataquest, PC sales worldwide rose by more than 23 percent to 28.6 million units in the third quarter from 23.2 million in the same period of the previous year. IDC noted an increase of 25 percent. Compaq's global lead has shrunk, according to Dataquest. In the third quarter, according to Dataquest, sales rose by 18 percent and the market share fell by 0.6 percent to 13 percent. In contrast, Dell was able to improve its market share to 11 (8) percent.

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