India Broadband Forum

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Dell losing market share to Hewlett-Packard and Acer

While the PC sales have increased impressively in the recent times, the world’s largest seller of personal computers is seeing a drop in their market share. The PC shipments increased by 13.1 percent in the first quarter of the year as per a report released by research group Gartner.

As many as 57 million PCs, notebooks, and servers were sold in the first three months of the year. However, Dell failed to impress the market with a slower than expected growth rate. Dell saw shipments rise worldwide by 10.2 percent from the first quarter of 2005. This resulted in its market share declining from 16.9 percent to 16.5 percent.

Dell’s performance in their home market was worse. The company saw shipments rise by only 0.2 percent when the overall market grew by 7.4 percent. Its market share in US is now at 29.8 percent down from 32%.

The company seems to have suffered as they have mostly stayed away from the budget segment of the computer market. In addition, they also are suffering from poor customer experience in the recent times.