HP Will Lose PC Crown to Lenovo but Remain a Leader

HP Will Lose PC Crown to Lenovo but Remain a Leader: Analyst HP is expected to lose its PC crown to Lenovo soon,plds ds-8w2s but its more effectively reorganized PC unit, its relationship with Microsoft and its commitment to China will help it to remain an industry leader, according to TBR. Hewlett-Packard is likely to losepioneer dr-td08hb its title as the world’s top-selling PC maker to Lenovo during the second or third quarter of this year. Still, HP will generate larger profits than Lenovo, and both companies will execute well going forward,pioneer dvr-kd08rs according to a May 21 report from Technology Business Research (TBR) analyst Ezra Gottheil, following HP’spioneer dvr-kd08va Global Influencers Summit in Shanghai earlier this month. Gottheil came away from the event believingdell precision m6500 slim dvd drive that HP has got its cart back on the tracks, after a leadership shake-up and the proposed possibility of spinning off its PC unit. The company is also looking at layoffs of between 25,000 and 30,000 employees, which would make it among the top 10 largest layoffsdell vostro 1500 dvd drive in the history of the IT industry. And while it managed to stay ahead of Lenovo during the first quarter of 2012, it posted growth between 3 and 4 percentgateway w350i dvd drive during the quarter, according to figures from IDC and Gartner, while Lenovo managed 28 percent year-on-year growth by Gartner's count and 44 percentgateway p-6860 fx dvd drive by IDC's. While HP may not know exactly in which hp compaq 8510p dvd drivedirection to move that cart, TBR believes it’s now much better organized to figure it out. “HP PCs are now better designed and better engineered,hp elitebook 6930p dvd drive” wrote Gottheil. “More importantly, the HP personal computer organization is now aligned around market segments instead of form factors, as in the past, which will lead to better targeted products and clearer product marketinghp envy 14 series slot dvd drive communications.” The reorganization of its computing segmentpanasonic uj-898 dvd drive for apple —the Personal Systems Group has merged with the Imaging and Printing Group to form the Printing and Personal Systems group, or PPS—is one contributor to Gottheil’s positive outlook sony vaio vgn-ar150g dvd driveon the brand. Another is its relationship with Microsoft—which Gottheil calls HP’s name for its tablet and ecosystems strategy. HP plans to rely on Windows 8 for its tablet OS, as well as on Microsoft for itssony vaio vgn-ar190g dvd drive personal cloud ecosystem—a good move, believes TBR, since “Android has not emerged as a significant player in business tablets and Google’s ecosystem is weak for business.” HP’s lack of handsets, and tablets only withsony vaio vgn-fe790 dvd drive Windows, leaves it out of the consumer space until Microsoft finds traction with consumer tablets, which is exactly the opposite of Lenovo’s strategy to address handset, tablet, TV, gaming consoles and other markets. However, TBR doesn’t sony vaio vgn-fe880e dvd driveexpect this will hurt HP’s PC or printer businesses, despite the “halo effect” companies such as Apple enjoy across segments. Instead, HP is staying focused on sony vaio vgn-fj290 dvd drivethe enterprise and the consumerization of IT, which means building PCs that people would want at home—machines that emphasize good design, have a long battery life, low weight and instant-on capabilities—while including the featuressony vaio vgn-fw270j dvd drive IT needs. The third major factor, said TBR, is China,sony vaio vgn-fw275j dvd drive where HP held its event for good reason. “HP announced that this year China will surpass the current leader in PC consumption, the U.S. By 2016, HP expects Chinese PC consumption to double that of the U.S.,” states the report. “The company established a PC development facility in Shanghai specifically to address the Chinese market, and will create models specifically for China if it will help sales in China.” HP CEO Meg Whitman, in a closing keynote at the event, said HP is “absolutely committed” to being a great partner to the Chinese government and to Chinese businesses. “We are committed to bringing the most innovative, highest-quality products, services and solutions to all of our customers, and we are fully committed to our PC and printing business,” added Whitman, who came into the CEO role in September 2011 and settled the matter of what to do with HP’s PC division. Still, TBR noted, even if the PSG were spun off, it’s the largest PC vendor and the most profitable Windows vendor. “While Lenovo is likely to pass HP in unit shipments soon,” added Gottheil, “HP will remain a dominating PC industry leader.” HP is scheduled to announce the results of its most recent fiscal quarter May 23.