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
While HP may not know exactly in which hp compaq 8510p dvd drive
direction 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
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 drive
on 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 drive
expect 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 drive
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
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.