The personal computer market continued to grow robustly in the second quarter as new technology and competitive prices drew more business customers, according to two research groups.
Dataquest Inc. and International Data Corp. said in reports to be released today that international and domestic PC markets enjoyed double-digit growth in the April-May period.
Both companies said Compaq Computer Corp. strengthened its No. 1 position as its worldwide shipments jumped 42 percent in the April-June quarter, expanding its market share to nearly 12 percent. IBM retained its No. 2 worldwide ranking, seeing shipments rise 20 percent.
IDC reported that Hewlett-Packard Co., which rose to No. 3 after falling out of the top 5, saw its shipments jump 48 percent; Dataquest reported a 58.4 percent increase.
No. 4 was Dell, the largest direct seller of computers in the United States. Its global shipments rose 61.4 percent according to Dataquest and 52 percent according to IDC.
Completing the top five in terms of worldwide shipments was Packard Bell-NEC, which Dataquest said had 1.7 percent fewer shipments in the second quarter than a year ago. IDC said Packard Bell-NEC's shipments rose 5 percent.
Intel to buy Chips & Technologies
SANTA CLARA, Calif. (Dow Jones News) -- Intel Corp. will acquire computer-chip maker Chips & Technologies Inc. for about $402.5 million, Intel said today.
Intel said it will make a cash tender offer of $17.50 a share for Chips & Technologies' stock. Any remaining Chips & Technologies shares will be converted into the right to receive $17.50 a share, Intel said. Chips & Technologies will be merged with an Intel unit as part of the graphics components division. It makes graphics accelerator chips for notebook PCs.
Separately, Intel Corp. was expected to announce today that it will cut some microprocessor prices about 50 percent, especially on older Pentiums without multimedia MMX technology and on slower versions of MMX chips.
Volcker says stock boom won't last
NEW YORK (AP) -- Paul Volcker, the former Federal Reserve chairman who tamed inflation in the 1980s, says investors are arrogantly unprepared for when the stock market boom eventually slows or stops.
In an interview with Forbes magazine, Volcker was sharply critical of the mind-set driving Wall Street's bull market.
"All you young people think this great boom in the stock market is normal, that you're entitled to 15 percent a year. These expectations cannot be met over the next 15 years," Volcker is quoted as saying in Forbes' Aug. 11 issue.
Though the economic picture is rosy now, investors are not planning for the inevitable downturn, Volcker said.
"What are you going to do when you find out there's a big downswing in stocks? Or five years of no increases? What happens then?" he said.
Starbucks eyes sales to food stores
SEATTLE (Bloomberg) -- Starbucks Corp. said more than 500 Chicago-area supermarkets will be stocked with Starbucks coffee today.
The introduction of coffee into the Chicago supermarkets is part of a plan to capture as much as 20 percent of the $3 billion U.S. grocery-store market for coffee.
"The Chicago test, is not whether we stay in Chicago, it's to decide whether we move to other cities.," said Starbucks Chief Financial Officer Michael Casey, in an interview.
This week in business
Here are the major business and economic events scheduled for this week:
Tuesday -- The Conference Board will issue results of its monthly survey on consumer confidence, and the Labor Department will release the second-quarter employment cost index.
Wednesday -- The Commerce Department will report on new home sales for June.
Thursday -- The Labor Department will release unemployment claims; the Commerce Department will report its first estimate of GDP for second quarter, and Freddie Mac will releases its figures on weekly mortgage rates.
Friday -- The National Association of Purchasing Management will announce results of its business survey for July; the Labor Department will releases unemployment for July, and the Commerce Department will release figures on personal income for June.