Hewlett-Packard (HP) has overtaken Dell to become the leading supplier of PCs in Europe, the Middle East and Africa (EMEA), according to market researcher IDC. In the second quarter of 2002, says IDC, HP's share of the market was up to 20.8% largely as a result of sustained price-cutting.

Overall, however, shipments in the region fell by 2.2% compared to the same quarter a year ago. The biggest slump was in Western Europe, where PC shipments were down 6% year-on-year.

Shrinking corporate IT budgets continue to hold back PC upgrade projects across EMEA, says IDC, a fact that is forcing vendors to compete very aggressively on price. In the short-term, HP's acquisition of Compaq should further drive down prices for end-users, says IDC. however, it expects Dell to soon retake market leadership.