Dell Computer continues to dominate the PC hardware market, even though overall PC shipments for the second quarter are lower than the same quarter a year ago. But Dell was able to increase year-over-year shipments for the quarter, maintaining its lead over Compaq in the United States and closing the gap between it and Compaq worldwide. Compaq sold 3.8 million machines in the quarter, giving it 13.2 percent of the worldwide market, down from 14.3 percent for the previous year. But Dell Computer rose to 11.5 percent of the worldwide market, with 3.5 million units shipped. Analysts cite Windows 2000's slow adoption as a major factor in the sluggish growth of the PC industry.

"Corporate America is still slow to adopt Win2K and seems to be taking a wait-and-see approach to upgrading hardware," says IDC analyst Gabrielle Griffith. The market for PCs in the United States and Europe has matured, according IDC, while the corporate buying cycle hit a low point during the Y2K changeover. With that past, however, and with Microsoft shipping its first service pack for Win2K soon, more companies will soon begin the long upgrade process to Win2K.

Rounding out the top five in the worldwide PC hardware market are Hewlett-Packard (HP) at number three with 7.5 percent of the market,followed by IBM and Gateway