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Lenovo Surpasses HP as Top Global PC Maker

Posted by Michael Tanenbaum News | Windows 8 Oct 11, 2012
Analysis of the PC global PC market by Gartner gives Lenovo an edge over Hewlett-Packard.
With the release of Windows 8 just over two weeks away, 3Q12 showed a continuing decline in PC sales, IDC reports, as buyers await the new operating system and as smartphone and tablet devices gain greater global influence. 

Reuters reports this morning that China's Lenovo Group, Ltd. has slightly overtaken Silicon Valley's 73-year-old Hewlett-Packard as the world's number one PC maker. According to statistics from Gartner, a rival to IDC, Lenovo holds a market share of 15.7% compared to HP's 15.5%. While Taiwan's Acer has also made advances, Dell managed to hold onto the third position. 

IDC statistics, meanwhile, still have HP atop the list, but the overall trend has been worrisome for PC makers hoping that Windows 8 can turn things around. HP issued a statement yesterday reinforcing the accuracy of the report from IDC:

“While there are a variety of PC share reports in the market, some don’t measure the market in its entirety. The IDC analysis includes the very important workstation segment and therefore is more comprehensive. In that IDC report, HP occupies the No. 1 position in PCs.”

Earlier in the week, Lenovo revealed the final versions of its IdeaPad Yoga convertible laptop, ThinkPad Twist, and IdeaTab Lynx. The 13-inch, 3.4 lb Yoga, pictured below, becomes available for pre-order today at Best Buy, pricing at $1,099, with an 11-inch version coming in December starting at $799. ArsTechnica has given less than glowing previews of all three devices, comparing them to the deluge of tablet PCs that first arrived nearly a decade ago, though with updated features reflecting developments on Windows 8.

IdeaPad-YOGA 1.jpg

While the Reuters piece points out aggressive pricing, overseas acquisitions, and a growing domestic market as reasons for China's growth in this sector, the big picture forecast is highly uncertain for PC vendors in light of the broader economic slump and emerging devices. 
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My question is, does this mean Microsoft really does start building a wider range of devices, or do they somehow acquire these companies (total speculation there)...I also saw this story on HP today, which does not sound promising. http://www.bizjournals.com/sanjose/news/2012/10/09/hp-balance-sheet-so-bad-stock-is.htmlIt will be very interesting to compare purchases of tablets and smartphones, regardless of the vendor, versus purchases of notebooks in Q4, just to see what people want most or as a measure of what they already own. For what it's worth, I had an HP pavilion ze5550 laptop from 2003-2006 and I still have some sentimental attachment to it. At the time it was great, but expectations have shifted just a little.

Posted by Michael Tanenbaum Oct 11, 2012

I am not sure about HP and Dell. HP has bad products. Period. I go through so many laptops and HP and Gateway were the worse including design and looks. New companies have better design. PC market is dying anyway. Report says that PC market will decline in 2013, first time in 11 years.

Posted by Mahesh Chand Oct 11, 2012

Another Reuters story quotes CEO Meg Whitman as saying that "recovery will become visible only in fiscal 2014 as investments begin to pay off". Hopefully HP will be prepared to soar when the economy does.

Posted by Sam Hobbs Oct 11, 2012
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