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Lenovo giving HP a run for its money in PC market


The battle for leadership in the global PC market sees Lenovo, with an aggressive pricing policy, closing in on market-leader Hewlett-Packard, and with consumersshowing less interest in spending on PCs and preferring to spend their hard earned cash on other devices like smartphones and media tablets.
As the PC market flattened out globally in the second quarter ofthis year, declining 0.1 percent compared to the same period in 2011, HP remained at the top of the market with 14.9 percent marketshare, but with worldwide shipments of its PCs declining 12.1 percent.
Along with tough economic conditions in several regions, analysts? Gartner in its latest report on the global PC market, attributes HP?s decline in PC shipments to several factors including internal issues from the company?s organisational changes, aggressive pricing from Lenovo in the professional market, and threats from companies such as ASUS and Samsung in the already crowdedconsumer markets.
In contrast, Lenovo?s shipment growth continued to exceed theworldwide average, Gartner reports, with the Chinese company significantly narrowing the market share gapwith HP.
According to Gartner principal analyst, Mikako Kitagawa, Lenovo has been very aggressive to expand through a series of acquisitions, as well as aggressive pricing. ?Lenovo?s aggressive expansion damaged its competitor?s performance, namely HP and Dell, by taking shares from them. Lenovo showed significant growth in EMEA though there is growing concern of the inventory build toward the second half of 2012.?
Gartner reports that Acer managed to increase shipments compared to a year ago, and thecompany was able to clear its inventory issues and prepare for the growth, with Kitagawa pointing out that the company has been one of the first vendors to release Ultrabooks, and will ?most likely lower the Ultrabook price faster than other vendors.?
Dell, reports Gartner, has been in a process of transforming itself from a PC supplier to solution provider for professional markets and, according to Kitagawa, although Dell?s focus was not to pursue the market share gain, the company needs to maintain certain level of market share. Meanwhile, Dell showed year on year shipment decline across all regions, but EMEA and Asia/Pacific were particularly challenging markets, Gartner reports.
ASUS showed the strongest growth among the top five vendors worldwide, with Gartner reporting its shipments increased 38.6 percent in the second quarter of 2012, with strong growth coming from EMEA and US markets.
Overall the global PC market has been flat in the face of tight economic conditions and Gartner also says that consumers are now less interested in spending on PCs, preferring to spend their hard earned cash on other devices like smartphones and media tablets.
Worldwide PC shipments totalled87.5 million units ? a decline of 0.1 percent - in the second quarter of this year compared to the same period last year, according to Gartner.
?In the second quarter of 2012, the global PC market suffered through its seventh consecutivequarter of flat to single-digit growth,? Kitagawa said. ?Uncertainties in the economy invarious regions, as well as.....


Active Techie
The reasons why Lenovo products are relatively too cheap shouldn't be attributed to only cheap labor as most people wrongly suggests