Print 14 comment(s) - last by TakinYourPoint.. on Oct 12 at 3:22 AM

  (Source: China Daily)
IDC still lists HP at number 1

Computer maker HP has been struggling as its stock price drops on increasingly poor computer sales. According to research firm Gartner, Lenovo took advantage of HP’s weakened state and is now the number one PC maker in the world as of Q3 2012. 
During Q3, global shipments of PCs fell by over 8% to 87.5 million units shipped. That represents the most dramatic decline since 2001, according to Gartner. Demand for PCs is declining as consumers move to portable devices such as tablets and smartphones for their basic computing needs.
"It's quite a tough year for PC makers because (Microsoft's) Windows 8 is not launched yet and some consumers are waiting for that. Cannibalization of tablet PCs is also another factor," said Eve Jung, an analyst with Nomura Securities in Taipei.

Lenovo IdeaPad S300
Interestingly, research firm IDC still ranks HP as the number one computer vendor so the numbers between Lenovo and HP have to be very close. IDC has HP in the lead by less than half of a percentage point in terms of global PC shipments.
Both Gartner and IDC numbers show that Asian computer makers such as Acer are beginning to take share away from U.S. companies such as HP and Dell. Dell was able to hold on to the number three spot in the global computer market for the quarter. HP currently holds 15.5% of the global PC market and shipped 13.55 million computers.

That number represents a 16.4% decrease in shipments from a year ago. This quarter is the first since 2006 where Gartner hasn't ranked HP as the top computer vendor. Gartner has Lenovo holding 15.7% of the market with 13.77 million computers shipped.
Lenovo recently announced that it would manufacture some of its “Think” branded devices in North Carolina.

Source: Reuters

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Pretty sure that's not the cause
By Solandri on 10/11/2012 4:03:37 PM , Rating: 2
Demand for PCs is declining as consumers move to portable devices such as tablets and smartphones for their basic computing needs.

I don't know any of my friends who thinks "I have a tablet/smartphone now, I don't need a computer." The one who comes closest has a 64 GB iPad. But the simple matter is he has several hundred GB of photos and baby videos, which simply won't fit on the iPad and aren't accessible with it since it doesn't allow external storage.

I'm pretty sure the reason PC sales are declining is simply because they've become so fast that there's no more reason to upgrade. 10 years ago an upgrade every 2-3 years produced a significant improvement in user tasks like word processing or spreadsheets, Today, even an entry-level i3 will chew through a document or spreadsheet faster than you can blink. Upgrading after 2-3 years produces little discernible improvement. So I'm pretty sure people are holding onto their computers longer before upgrading. A million people upgrading every 2 years is 500,000 PCs/year in sales. A million people upgrading every 5 years is 200,000 PCs/year in sales. Hence the drop in annual PC sales.

Smartphones and tablets OTOH are on a 1-2 year upgrade cycle, so are seeing brisk sales.

By TakinYourPoints on 10/12/2012 12:19:58 AM , Rating: 2
You get it by the second paragraph. It is less about PCs not being necessary and more about them being fast enough at this point. My gaming PC drives a 2560x1440 monitor and aside from one video card upgrade it has all been the same machine for three years, an i7 860. Same with my 27" iMac, also an i7 860. I have no burning desire to upgrade either, while before I would be itching to upgrade by the two year mark.

I'm on the high end of hardware users, so imagine how unnecessary a PC upgrade is to a normal person?

Tablets and smartphones on the other hand have loads of room to grow. Aside from having a dependable 2 year upgrade cycle, we're also nowhere near saturation point with those devices. The other thing is smartphones and tablets are also personal devices while a household can share a PC or two.

On top of all of that, a $500 smartphone or tablet has significantly higher profit margins than a $500 junk laptop. These are all huge reasons why Dell/HP/Acer/etc are getting screwed right now.

Lenovo and Apple never lost sight of quality in their laptops, I believe that's why they are still doing well despite not racing to the bottom with everyone else.

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

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