While most of the computer hardware industry fizzles, Dell continues to shine, albeit more modestly than in the past.
Dell grew its global PC shipments by 5.9 per cent in the third quarter, while all other major competitors saw slumps - of as much as -50.9 per cent in the case of Compaq, and -33.2 per cent for Hewlett-Packard (HP), according to analyst IDC.
In the Europe, Middle East and Africa (EMEA) region, PC shipments overall tumbled by 9.5 per cent and by 12 per cent in Western Europe alone, says IDC, but Dell again bucked the trend, posting a 6.6 per cent growth in shipments to EMEA customers.
Dell's strategy is to capitalise on the hardships of other vendors and to use its extremely tight manufacturing business model to pick up market share in the declining market, said Dell's president and chief operating officer, Mr Kevin Rollins, in Dublin this week.
"In times of a downturn, we can adjust our model very quickly," he said.
In the EMEA region, Dell has gradually moved up to become the number two, from number five, player in terms of market share, just above IBM but below HP.
Dell retains about a 35 per cent share and the number one position in the Irish market. Unlike its US market, its European market is more consumer-based and therefore has lower margins, Mr Rollins said. Dell primarily targets the higher-margin, higher-profit corporate and industrial sector overall, he said.
Less than 50 per cent of its total business is in consumer desktops, and less than 55 per cent of total revenue comes from that market.
While he does not believe the market is going to change much in the fourth quarter - neither gaining nor declining significantly - Mr Rollins points out that the corporate market is due for a "refreshment period" starting in the spring.
Every three years, businesses tend to replace their desktops, and the last time most did this was in 1999 as part of their Y2K systems' overhaul.
Mr Rollins also expects a boost from the release of Microsoft's revamped operating system, Windows XP.
"We're very hopeful and, overall, believe IT spending will continue," he said.
