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February 17, 2005 | Comments: (0)
Dell Lengthens Its Desktop Lead Among Small Businesses
Dell Computer Inc. continues to stretch out its lead over Hewlett-Packard/Compaq for desktop systems among small businesses, according to a recently released survey conducted by IDC among 850 small businesses.
The survey, called the 2005 U.S. Small and Medium-Sized Business Survey, showed that Dell desktop PCs are owned by 43.5 per cent of the PC-owning small businesses, a significant increase compared to the results of a similar IDC study conducted five years ago. That previous study showed a much closer competition among five different PC makers, where 15 to 20 per cent of the small business PC owners said they had at least one PC from each of those five major suppliers.
The HP-Compaq combination, with 32.9 per cent, dropped to number two from the top spot it held five years ago. The small business ownership of the two brands has very little overlap, with only 3.9 per cent owning both HP and Compaq branded systems. IDC attributes this to the retirement of older, pre-merger Compaq systems.
Both IBM and Gateway held their respective ownership levels over the past five years with each brand owned by 10 per cent of small businesses. Apple also continued to show a strong loyalty among its users, with slightly less than 10 per cent of small companies owning an Apple system, particularly among those users involved with graphic arts.
Perhaps the biggest shift, according to the survey, has been the move away from white box desktop units. White boxes were once the leading brands but their ownership levels have dropped from 37.6 per cent to 17.6 per cent of small firms over the past five years. One of the reasons for the drop may have to do with consistent price dropping of brand name PCs over that period of time.
But small business ownership of PCs from multiple vendors continues on, with small businesses, on average, owning systems from 1.55 manufacturers, according to the survey. The report concludes that this represents both a threat and opportunity for PC suppliers because previous ownership of a brand is not a guarantee of a future purchase of the same brand.
The chances for Dell holding onto its lead and/or increasing it are good, the survey stated, given the company is now firmly entrenched in the PC desktop market and given the growing popularity of the direct selling channel, and the company's aggressive pricing.
To purchase the report users can visit www.idc.com
Posted by Ed Scannell on February 17, 2005 12:09 PM
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