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HP still reins supreme abroad and in U.S. for PC shipments

The latest numbers in PC shipments for Q3 2009 are in from research firm IDC. According to the numbers, the PC industry is finally turning around with growth in the face of the poor economy. Intel posted growth this week for Q3 leading to speculation that the computer industry would as well and IDC's numbers indicate that is true.

IDC reports that the shipment of PCs rose by 2.3% globally for Q3 2009 compared to Q3 2008. That may sound like a slight growth, but compared to Q1 2009 where the market shrank by 6.8% compared to 2008 and Q2 where the market shrank 2.4%, the slight growth is something to talk about. IDC reports that all regions met their growth expectations except for Japan.

"Despite the ongoing mix of gloom and caution on the economic front, the PC market continues to rebound quickly," said Loren Loverde, program director for IDC's Tracker Program. "The competitive landscape, the transition to portables, new and low-power designs, growth in retail and consumer segments, and the impact of falling prices are all reflected in the gains by HP and Acer, as well as overall market growth."

"The continued strength of both the U.S. and worldwide PC business in the face of difficult economic environments underscores the value that both consumer and corporate buyers place on PCs," adds Bob O'Donnell, vice president, Clients and Displays at IDC. "With the forthcoming launch of Windows 7 and expected commercial refresh beginning in 2010, the prospects for future PC market growth are very solid."

HP maintained its spot as the top shipper of PCs in the world with 20.2% of the market. Acer passed Dell to grab the second spot on the list with 14% of the global PC market with Dell slipping to third place with 12.7% of the global market. Rounding out the top five global computer shippers is Lenovo with 8.9% of the market and Toshiba with 5.2% of the market.

Things look a bit different for the U.S. market for the quarter. HP is the top in shipments within the U.S. with 25.5% of the market. Dell is a very close second place with 25% of the U.S. market. Third place goes to Acer with 11.1%, fourth place is Apple with 9.4%, and fifth place goes to Toshiba with 8.1% of the U.S. market.



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What about profit and revenue?
By Yawgm0th on 10/15/2009 11:42:08 AM , Rating: 3
If Acer ships ten netbooks at craptastic profit margins but Dell ships eight XPS laptops at good ones, is Acer actually winning anything? Hell, I hate to admit it but Apple is a much, much bigger player in this particular industry than its market share would indicate simply because they have such huge margins.

Don't get me wrong, pure market share in terms of computers shipped is relevant, but what's the bigger picture here?




RE: What about profit and revenue?
By Denigrate on 10/15/2009 12:11:40 PM , Rating: 1
Why on earth would you look at an antiquated ideal like margins? Don't you know in our new world economy it's all about market share?


RE: What about profit and revenue?
By jbwhite99 on 10/15/2009 1:12:30 PM , Rating: 2
GM makes as much money selling 1 Cadillac as they do selling 10 Chevy's (or that's how the saying goes).

The problem with companies like Acer and Dell is that they are driving all of the cost out of the industry. That is good for prices, but means companies can't spend money on R&D. This is driving people to buy more and more "generic" PCs. I'm sure that the 900 Dell manufacturers in NC would think that profit is more important than market share, when they are replaced by 900 workers in Taiwan...


RE: What about profit and revenue?
By Yawgm0th on 10/15/2009 1:25:54 PM , Rating: 2
quote:
GM makes as much money selling 1 Cadillac as they do selling 10 Chevy's (or that's how the saying goes).
He was agreeing with me. :) He was basically saying "Duh!" creatively.


RE: What about profit and revenue?
By Smilin on 10/15/2009 1:28:05 PM , Rating: 2
There is plenty of money left for R&D.

While we are discussing "Chevy's" here when talking about Acer passing Dell in market share the fact remains that Dell also makes "Cadillacs" with a very large profit margin.

The XPS desktop with water cooling comes to mind. If you compare it to the cost of doing an equivalent machine by hand you can tell that dell is making huge margins on it.


RE: What about profit and revenue?
By Dobs on 10/15/2009 9:24:26 PM , Rating: 3
Some of Dell's base models appear cheap (in Australia) but once you see the specs you soon realize that you'd have to upgrade some (usually many) parts to match other brands.

Then as you click Customize (as you inevitably always do) you pay way more than full retail prices for the part customization instead of the difference between parts.

Eg. Upgrade from T6500 (included in price) to P8700 DELL cost is AUS$280.50.
Upgrade from a Celeron 900 to P8700 DELL cost is AUS$500.50.
Actual cost of P8700 on Intel site is US$209 - AUS$225!!!

DELL is comparable to Apple as far as price gouging is concerned... in Australia anyhow.


RE: What about profit and revenue?
By Smilin on 10/16/2009 1:31:53 PM , Rating: 2
quote:

Then as you click Customize (as you inevitably always do) you pay way more than full retail prices for the part customization instead of the difference between parts.


Exactly. Dell and others have plenty of profit margin on the high end stuff (or if you customize the low end stuff) while still doing the volume on the low end/low profit parts to maintain market share.

quote:

DELL is comparable to Apple as far as price gouging is concerned... in Australia anyhow.


Nobody gouges better than apple. Nobody. (in the US as least).


RE: What about profit and revenue?
By drebo on 10/15/2009 8:54:27 PM , Rating: 3
You forget that Dell also makes a netbook and that Acer also has an "enthusiast" line.

These marks are just as important as revenue and profit margin (and, fyi, Dell's profit margin sucks) when considering the success of a brand world-wide. Also, while Acer may not be popular in the US, they are extremely popular in places like Southeast Asia, where Dell barely has a foothold. Dell's business model doesn't really hold up in places like China, which is why there is such a large disparity in the differences between Acer and Dell in the domestic and worldwide markets.


That's why Michael Dell was bashing netbooks.
By reader1 on 10/15/09, Rating: -1
RE: That's why Michael Dell was bashing netbooks.
By amanojaku on 10/15/2009 11:00:28 AM , Rating: 1
Not that I pay much attention to anything you say, but I thought Asus was dominating the netbook market with the Eee PC?


RE: That's why Michael Dell was bashing netbooks.
By reader1 on 10/15/2009 11:05:12 AM , Rating: 1
"Acer Netbook Shipments to Beat Asus's Eee PC"
http://www.pcworld.com/businesscenter/article/1531...


By damianrobertjones on 10/15/2009 11:26:59 AM , Rating: 2
Whatever's cheapest and in for the masses, sells well. Dell will simply develop, push harder and advertise more.


By jonmcc33 on 10/15/2009 2:00:39 PM , Rating: 2
I haven't seen very many Acer commercials. In fact, I don't recall seeing any. It's been a while since I have seen any Dell commercials.


By frobizzle on 10/15/2009 3:46:33 PM , Rating: 2
I used to think Dell was bad but compared to Acer? Dell is a Rolls Royce compared to Acer! I had the most unfortunate and highly unpleasant experience of having to deal with Acer's so-called support. Off shore and barely able to comprehend English, it is a study in futility trying to get them to understand a problem! Even if you do manage to get past that hurtle, all they try and do is try to avoid accepting any responsibility for their substandard crap!
Do yourselves a favor and avoid Acer like the plague!


RE: That's why Michael Dell was bashing netbooks.
By amanojaku on 10/15/2009 12:33:01 PM , Rating: 2
It's a shame that one of reader1's useful posts is actually rated down. Btw, my first post was a genuine question and I was surprised that I got a genuine answer.


By Smilin on 10/15/2009 1:21:19 PM , Rating: 2
I agree it was a useful post. I do not agree that it was a shame he got modded down.

The dude has been an utter trolling tool for a while now and frankly everyone is sick of it.

If he has turned over a new leaf and decided to be a contributing poster then I would suggest he also spin up a new username. He has soiled his own name and it's unlikely it will clean up anytime soon. Pims is in the same boat.


By damianrobertjones on 10/15/2009 11:02:12 AM , Rating: 4
UMPC's, mids. Machines like the Toshiba M750.. Archos etc

Didn't sell 'that' much.

Once people start to type large messages, touch screens go out the window.

"Web content providers will eventually be able to stop distributing content on the PC, in favor of the significantly more profitable web devices. "

What does that actually 'mean'?


RE: That's why Michael Dell was bashing netbooks.
By reader1 on 10/15/09, Rating: 0
By Pirks on 10/15/2009 1:03:56 PM , Rating: 3
quote:
PC game developers migrated over to the consoles
What about Steam? You don't KNOW the sales of PC games on Steam, hence you don't KNOW for sure that PC gamer developers indeed moved over to consoles. Hence your words are no more than thoughts and opinion. Fortunately, not hard facts yet.

When we know Steam revenue/unit shipments, THEN we can decide on that. Unfortunately, Valve is not very open about it.

All I can say is that my Steam library is about 30 titles now and quickly growing, I buy games on sale usually and save about $30-$40 per game compared to consoles.

Because of these facts above I'm inclined to call your quoted phrase a pure BS for now.

We'll get back to this discussion if Valve publishes Steam sales/revenue numbers.


By Cypherdude1 on 10/15/2009 2:55:02 PM , Rating: 2
quote:
"Web content providers will eventually be able to stop distributing content on the PC, in favor of the significantly more profitable web devices."
What does that actually 'mean'?
I think he's talking about iPhones and similar devices. Web content providers will not stop distributing content to the PC. There are far more desktop PC's and laptops than iPhones, Blackberries and other smart phones.

BTW, a full-powered 16", 500 GB, 6 GB laptop with a 12-cell, 8 hour battery only costs $800. A 10" netbook costs $300. I'd rather get the laptop. The only area a netbook has the advantage is in traveling, trying to get through the airport and carrying it around. Even then, a 16" laptop can still be carried onboard an aircraft with minimal inconvenience.


By Menoob on 10/15/2009 12:10:35 PM , Rating: 2
Is it worth the effort to post nonsensical garbage?

"Things are only going to get worse for desktop PCs and laptops as web devices, like Apple's upcoming tablet, become more popular. Web content providers will eventually be able to stop distributing content on the PC, in favor of the significantly more profitable web devices."

Does this make any sense even to you?


By n00bxqb on 10/16/2009 2:08:21 PM , Rating: 1
Dell is losing market share for one simple reason:

They absolutely refuse to be competitive in the retail sector. They give retailers products that are marginally competitive when they're first released and, about 5 weeks into the product cycle, they're impossible to sell to anyone who isn't specifically looking for a Dell.

Obviously, you can keep your costs down and profits up by selling online, but it's difficult to compete in terms of market share when you get creamed at brick & mortar outlets.


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