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HP inches away from Dell in PC race, says iSuppli

Posted: 05 Dec 2007 ?? ?Print Version ?Bookmark and Share

Keywords:PC race? iSuppli report? HP ranking? Dell computers?

With shipments of 13.1 million PCs in Q3, Hewlett-Packard Co. continued to expand its lead over rival Dell Inc. in the global PC market, according to iSuppli Corp.'s preliminary market ranking.

Hewlett-Packard's shipments grew by 32.7 percent or 3.2 million units from 9.9 million in Q3 06. This expansion allowed Hewlett-Packard to outgrow global PC unit shipment growth, which reached 13.8 percent in Q3 compared to a year-ago period.

Hewlett-Packard's market share expanded to 19.2 percent in Q3, up from 18.3 percent in the previous quarter, and from 16.5 percent in Q3 06. This marked the fifth straight quarter that Hewlett-Packard occupied the top spot in the global PC market, noted iSuppli.

"Hewlett-Packard continues to gain momentum in the PC market due to its strong channel presence and its moves to capitalize on the strength of the notebook segment," said Matthew Wilkins, principal analyst for iSuppli.

Dell's doldrums
Meanwhile, Dell underperformed the market with meager growth of 1.5 percent. Dell shipped 9.9 million PCs worldwide in Q3, compared to 9.8 million during the same period in 2006. Company market share in Q3 reached 14.6 percent, down from 16.3 percent a year ago. Dell posted the weakest growth among the top five PC OEMs in Q3, reports iSuppli.

"Despite a renewed focus on its PC business, and the return of Michael Dell to the company's helm, Dell's channel business is taking time to ramp up and have an impact on company sales," Wilkins said.

Dynamic arena
Dell also faces mounting pressure in the notebook PC business from smaller rival Acer Inc. of Taiwan. Acer delivered a stellar performance in Q3 notebook market, allowing it to displace Dell as the world's number two maker of such PCs.

In fact, Acer achieved the strongest performance in the global PC market of all OEMs in Q3, with its shipments rising by 68.8 percent. Company PC shipments increased to 5.4 million units in Q3, up from 3.2 million in Q3 06. Acer's global PC market share rose to 7.9 percent, up from 5.4 percent during the same period in 2006.

"Acer's ascension in market share is due to its strong performance in the notebook business, and its robust sales in the Asia-Pacific and European regions," Wilkins said. "Acer is executing well in the channel and offering aggressive pricing."

Despite its impressive notebook shipments in Q3, Acer was unable to usurp its current nemesis, Lenovo of China. This allowed Lenovo to retain its third position, with a market share of 8.1 percent, compared to Acer's 7.9 percent. Acer is almost certain to overtake Lenovo in Q4 as a result of the Gateway acquisition and its continued momentum in the notebook PC market, Wilkins predicted.

Global PC shipments hit 68.1 million units in Q3, up 13.8 percent from 59.9 million from a year-ago period, and up 11.1 percent from 61.3 million in the previous quarter.

The notebook segment continued to drive the expansion of the overall PC market, with y-o-y growth of 33.5 percent. However, desktop PC shipments increased at a healthy pace as well, increasing to 39 million, up 3.4 percent from 37.7 million in Q3 06. According to iSuppli, worldwide PC market will have a unit growth of 12 percent this year. View OEM PC rankings in Q3 here.




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