Lenovo Beats HP as Top PC Maker: Gartner
October 11, 2012 3:21 PM EST
China's Lenovo Group Ltd edged out Silicon Valley icon Hewlett-Packard Co to become the world's No. 1 PC maker in the third quarter, according to new data released by research house Gartner on Wednesday.
A rival to Gartner, IDC, still ranks HP in the lead -- but by less than half a percentage point -- in terms of PC shipments worldwide. But both studies reinforce HP's struggles against rivals as new CEO Meg Whitman tries to overhaul the stalled 73-year-old company.
Worldwide shipments of personal computers fell over 8 percent last quarter, according to both research firms, which blamed myriad factors including retailers and vendors ridding themselves of older inventory ahead of the launch of Microsoft's Windows 8 operating system, the growing popularity of mobile gadgets like tablets, and a slowing economy.
PC demand growth has crumbled over the past year as more consumers flock to ultra-portable and increasingly powerful tablets and smartphones for basic computing.
Both sets of data show that Lenovo, Acer and other Asian PC makers are taking share away from U.S. competitors HP and Dell, which held on to the No. 3 spot in the quarter.
Lenovo's rise highlights the advance of China's technology firms on the world stage in recent years thanks to a combination of aggressive pricing, overseas acquisitions and taking advantage of a fast-growing home market.
The Chinese firm, which vaulted into the PC market by buying IBM's personal computer division in 2005, took the top spot for the first time by growing its market share to 15.7 percent, shipping an estimated 13.77 million units during the quarter, up nearly 10 percent from a year ago, Gartner said.
HP's global PC share stood at 15.5 percent after shipping 13.55 million units, down 16.4 percent from a year ago, Gartner said, adding that this is the first time HP has given up the top PC vendor position since 2006.
IDC had HP at the No. 1 spot with 15.9 percent market share and Lenovo coming a close second with 15.7 percent share.
HP responded to Gartner's study by saying IDC's was more expansive.
"While there are a variety of PC share reports in the market, some don't measure the market in its entirety," HP said in a statement. "The IDC analysis includes the very important workstation segment, and therefore is more comprehensive."
Shares of HP on Wednesday closed 1.32 percent lower at $14.18, after touching $14.02, its lowest level since October 2002.
Analysts say PC makers have been sideswiped by still-sluggish growth in consumer and corporate spending across the globe, even in once-reliably hot markets like China, Lenovo's home turf. The industry is now grappling with uncertainty out to 2013, partly because of a proliferation of computing devices from tablets of all sizes to smartphones.
"PCs are going through a severe slump," said Jay Chou, senior research analyst, IDC's Worldwide PC Tracker.
"A weak global economy as well as questions about PC market saturation and delayed replacement cycles are certainly a factor, but the hard question of what is the 'it' product for PCs remain unanswered."
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Typhoon Matmo Leaves 32k Customers w/o Electricity in Taiwan, Weakens After Landing in China
Join the Conversation
- California Fruits Recalled in USA and Canada for Possible Listeria Contamination
- Malaysian Airlines Flight 17: Air Carrier Losing $1.6 Million/Day; Crisis Management Experts Suggest Hiring Risk Expert as CEO
- The IBM and Apple Merger: Will it Spell Trouble to Rival Companies
- Biggest Australian IPO in 4 Years as Healthscope Could Raises $2.12 Billion
- CBA, NAB, Westpac in Fixed Rate War Offering Below 5% Interest
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- HTC Google Nexus 8 Release Date Imminent with New Nexus 7 Deals, Two New Tablets Soon
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales