Compaq Extends U.S. Market Share with Record Gains; Outpaces Competition in Key Markets; Ranks as No. 1 Corporate Desktop; Leads Wintel Sales to Education

Business Wire, Dec 9, 1997

HOUSTON--(BUSINESS WIRE)--Dec. 9, 1997--Compaq Computer Corporation (NYSE:CPQ), the world's leading provider of PCs and servers, today announced that it outpaced the competition with record market share gains in the U.S. during the third quarter. According to International Data Corporation (IDC), a leading industry research firm, number one Compaq held an 18.8 percent overall market share -- an increase of five and one-half market share points from the second quarter. This represents the largest quarter-to-quarter market share gain in Compaq's history, and the largest in the industry since 1995. Compaq grew three times faster than the market and now holds more overall U.S. market share than the number two and three companies combined.

Compaq was the most popular brand overall within key customer segments, including large and medium businesses, small companies, government customers, and home users. Compaq continued its strong market share gains in the education arena to become the leading Wintel-based provider for schools. Compaq remained the leader in desktop and PC server shipments and rose to the number two position in the portable market.

IDC said that Compaq was the leading supplier of desktops to medium and large businesses for the second quarter of 1997, this confirms that Compaq has led the year cumulatively in both desktop and PC server shipments.

"IDC's market share results reaffirm that our customer-focused initiatives are working," said Jim Schraith, Vice President and General Manager, North America, Compaq Computer Corporation. "Compaq is effectively leveling the playing field as far as price, while providing customers with better access and greater flexibility when choosing products. Our focus and attention on user requirements is resulting in high levels of customer satisfaction. This is helping Compaq pull away from the pack."

Third Quarter Market Share Highlights

Number One in all Businesses

IDC research shows Compaq grew its market share to claim more than one-fifth of the medium and large business segment, extending its lead in that arena. It also strengthened its overall leadership position with small businesses, growing to own nearly one-fifth of that segment, and reflecting Compaq's increasing emphasis on this key market. Compaq also holds the overall leadership position in the small office segment.

Rising to the Top of the Class in Education

In the education market, Compaq continued to win market share to become the leading Wintel-based supplier to schools and universities. Compaq more than doubled its market share in this segment over the same period last year, reflecting the increasing popularity of Compaq's full range of products in the education space.

Double Digit Growth in Government

Compaq continued to expand its lead in the government segment during the third quarter, capturing more than 20 percent of this market. This represents a doubling of the number of units shipped over the same period last year.

Compaq: America's Favorite Desktop PC

Compaq's total share of the U.S. desktop market now stands at 19 percent, nearly twice as much as the number two vendor. In the third quarter, Compaq shipped more than 1.2 million desktop PCs, which represents a 68 percent growth rate from the second quarter. Compaq is the leading desktop provider for businesses and homes and the top Wintel-based PC in education.

Dramatic Increase in Portable Market Position

Compaq portable shipments shot up 100 percent in the third quarter over the same period last year to propel the Company to the number two position with a 15.7 percent market share. This 6.4 point increase in market share reflects increased demand for portables from corporate, government, education and home users.

Continued PC Server Leadership

Compaq maintained its leadership position in the PC server market during the third quarter with a 35.5 percent market share. Compaq's share of the U.S. PC server market is more than the combined share of the next two nearest competitors.

Company Background

Founded in 1982, Compaq Computer Corporation, a Fortune 100 company, is a global information technology company. Compaq is the fifth largest computer company in the world and the largest global supplier of personal computers. With worldwide sales of $20 billion in 1996, Compaq develops and markets hardware, software, solutions and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, networking products, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices. Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products can be found at http://www.compaq.com or by calling 1-800-OK-COMPAQ in North America. Product information and North America reseller locations can be obtained by calling 1-800-345-1518.