Dell retained its topspot

Dell, which has embarked on an aggressive cost-cutting strategy, narrowly retained its position as the world's largest manufacturer of computers, continuing to outstrip its close rival Hewlett Packard.

The research from two firms, Gartner and IDC, confirmed the recent trend that PC sales are finally beginning to take-off after the technology slump.

But the growth was driven by consumers snapping up notebook computers rather than businesses.

Market share Dell 17.4% HP 17.1% IBM 5.9%

Computer manufacturers have been desperately waiting for signs of renewed spending from businesses, who tighten their IT spend during tough times.

The willingness of firms to spend significant amounts of cash on upgrading computers is also closely-watched as a sign of a wider economic turnaround.

Profit rises

IDC said that corporate spending on PCs in the US remained selective but began to show signs of improvement.

"Consumers in particular have reacted to low prices and wireless features. Although commercial spending remains cautious, even this segment is making some progress," IDC analyst Loren Loverde said.

On Wednesday, IBM's chief executive Sam Palmisano said that while the company was confident that corporate IT spending would bounce back in line with an economic turnaround, it remained too soon to mark the start of a recovery.

Both IBM and Apple unveiled a jump in profits when they unveiled results on Wednesday night.

And Germany's SAP, the world's leading maker of business software, said on Thursday that its net profit rose by 25% during the third quarter.