Despite competition from the new HP, Dell has continued to gain market share. HP shipped about 120,000 more units worldwide than Dell during the fourth quarter of 2002, but Dell's shipments rose 24.2 percent and its market share increased from 13.2 percent to 15.7 percent year over year, according to recent reports from IDC and Gartner. Dell also shipped the highest number of units in the US during the fourth quarter, capturing 29.2 percent of the market, thanks to a 24 percent year-over-year gain in shipments. HP's US shipments shrank by 6.1 percent, leaving it with a 20.8 percent share, IDC said. HP counters those figures by saying it has increased shipments sequentially for the last two quarters. In the fourth quarter, for instance, the company's unit shipments increased by 21 percent worldwide compared with third-quarter shipments, according to IDC. HP also says it has stabilised its market share. Where HP was No. 1 in the fourth quarter, Dell had the top spot in the third quarter. This back and forth is likely to continue for several quarters to come, IDC researchers predicted. Dell could, say, lose a few bids if HP can match its prices and include services or other extras the direct PC seller can't match. HP has signed several large deals of late, including one with the Internal Revenue Service, Thompson said. "We think our strategy is working. We feel good about where we are," Thompson said, citing growth in sales to the corporate, government and education sectors over the past two quarters. Dell, for its part, downplays the threat from HP and says it has no intention of falling behind on the competitive front. "We're not changing our strategic direction. That means maintaining our competitive position on pricing and service to customers," said Mike Maher, a Dell spokesman.
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