Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):
H-P Gains on Dell for Primacy In PCs as Market Growth Slows
Summary: Research firms IDC and Gartner released their estimates of PC shipments and market share in Q2. Key points: IDC said world-wide PC shipments rose 9.5% year over year, with European shipment growth of 7%, far less than IDC's forecast of 12%, adversely impacted by the World Cup. Gartner said world-wide shipments rose 11%. Both IDC and Gartner said US shipments rose 6% due to price reductions caused by Intel's release of its Conroe microprocessor and the resulting need to sell inventory of older models. Dell's US market share stayed flat at 32-34% according to both IDC and Gartner. That's an improvement over Q1, when Dell lost market share for the first time in a decade, according to IDC. HP's US market share rose -- to 18.9% from 17.4% according to Gartner, and to 20.2% from 18.6% according to IDC. HP's global market share rose to 15.9% from 15.4% according to IDC, and its shipments rose 13%.
Comment on related stocks/ETFs: If HP (NYSE:HPQ) gained a lot of share in Q2 but Dell (NASDAQ:DELL) didn't lose, who did? Probably Gateway (GTW), Sony (NYSE:SNE) or Toshiba. HP's market share gains are well publicised and probably priced-in to the stock. Dell's market share stabilization is probably incrementally positive for its stock. And if Gateway did indeed lose share, you don't want to own that stock (GTW) going into earnings.