The US computer giant Dell has said its growth in market share has allowed it to regain its position as the largest personal computer maker.

Dell lost the title briefly to Hewlett-Packard earlier this year after HP bought Compaq Computer.

Dell made the announcement as it reported a 31% rise in profits for the three months to the end of October.

It added that shipments in the current quarter were set to rise by 23%, and forecast higher earnings and revenues.

Dell has pursued an aggressive price strategy which has allowed it to win market share from rivals despite the slump in spending on information technology.

The company is planning to start making printers and handheld computers for the first time, in a move which will see it challenging products made by Hewlett-Packard.

Profits and revenues rise

Dell said its growth in market share "again made Dell the world's leading supplier of computer systems".

"The company regained its position as the favourite computer company among US consumers, and ranked No.1 in all US customer segments for the first time," it said in a statement.

Net profits for the August to October period climbed to $561m (�357m), or 21 cents a share, from $429m in the same period last year.

Revenue rose to $9.14bn, up from $7.47bn in 2001.

Both figures were in line with analysts' expectations.

Dell put the rise in profits down to a combination of lower costs, and a better mix of products and services.

For the current quarter, Dell forecast earnings of 23 cents per share, with revenue 20% higher at $9.7bn.

But chief financial officer Jim Schneider said conditions remained tough.

"While we saw a few encouraging signs in the third quarter it is still too soon to call a rebound in overall IT spending," he said.

"The demand environment has not changed. It remains stable in the US, with some other regions still experiencing softness."

Shares in Dell had risen 3% to $30.94 ahead of the results on Thursday, but in after hours trade they slipped back to $30.13.