TECHNOLOGY - July 29, 1996

PC Sales Growth Slows: Personal computer sales grew more slowly in the second quarter than in the first, according to a new study. The market for PCs grew 16.5% worldwide and 12% in the United States, Dataquest reported. That’s down from 18.4% worldwide growth and 14.7% U.S. growth in the first quarter. Growth in both markets exceeded 20% during the second quarter of 1995. Houston-based Compaq Computer Corp. continued to lead the industry but lost ground in both worldwide and U.S. sales to second-place IBM and others. Compaq’s worldwide market share was 9.7% and U.S. share was 12.4% in the second quarter. IBM’s worldwide PC market share jumped to 8.8% from 7.2% in the first quarter and its U.S. share jumped to 9% from 6.1% in the first quarter. Armonk, N.Y.-based IBM had been the No. 1 PC seller for many years until it was unseated by Compaq in 1994. Cupertino, Calif.-based Apple continued to be the third-largest PC seller worldwide, though its sales dropped nearly 17%. The company had 5.3% of the world market and 7.4% of the U.S. market. Dataquest analyst Kimball Brown said skillful inventory management, keeping few parts on hand or “turning” inventory rapidly is now the key factor to success in the PC business.