UPDATED 08:20 EDT / JULY 13 2012

Lenovo’s Still After Dell, HP and the Rest of the World’s PC Makers

Gartner and IDC have released their preliminary figures for PC sales in the second quarter 2012 and cut forecast for growth in worldwide PC market this year due to slowing economies in Western Europe and the US, and the rise of the tablets. This is the seventh consecutive quarter with PC growth limited to a single digit increase across the industry.

Gartner reported this period saw the sale of 87.5 million PCs worldwide, down 0.1 percent over the same quarter a year ago, a figure that continues to be surprising considering the success of Ultrabooks.

Sales growth remains low at a time when PC makers try to meet the level of innovation that consumers demand for the products they buy. Both research firms seem to agree that Windows 8 and Ultrabooks will create an offer compelling enough to bring back the fans excited again for the PC.

HP still rules

In the ranking, HP still dominates with 13 million PCs sold for Q2, but that figure is down 12.1 percent year-over-year. Lenovo, aggressive on pricing, grew by 14.9 percent. Acer is third with 3.6 percent. Dell and Asus are respectively fourth and fifth, Asus seeing a boost by diversifying its range from cheap to upscale gadgets.

“In the second quarter of 2012, the PC market suffered through its seventh consecutive quarter of flat to single-digit growth,” Mikako Kitagawa, principal analyst at Gartner, said. “Uncertainties in the economy in various regions, as well as consumer’s low interest in PC purchases, were some of the key influencers of slow PC shipment growth. Despite the high expectations for the thin and light notebook segment, Ultrabooks, shipment volume was small and little impact on overall shipment growth.”

The success of Apple’s iPhone and iPad and Android smartphones has sapped consumer demand for personal computers, while the long-awaited recovery cycle replacement of personal computers in business has derailed the U.S. and Europe by the debt crisis and associated problems.

In the US alone, Gartner report says HP, Dell and Apple are on the podium. PC shipments registered a 5.7 percent decline from the same period last year with a total of 15.9 million units.

Lenovo is fast catching up

According to IDC figures, the US PC market shrunk further by 10.6 percent compared to a forecast of 4.4 percent. Only Lenovo recorded a 6.1 percent year-over-year growth due to its expanding number of channel lists and aggressive pricing. The situation will likely to change after the arrival of Windows 8 operating system.

Lenovo is also aiming to overtake Dell to become number two in PC OEM sales. Last July, the research firm IDC published that Lenovo has taken the number three spot from Acer in PC sales with 12.2 percent market share. In the fourth quarter of 2011, Lenovo reported a 37 percent year-over-year increase in sales revenue, challenging its way to dominate the global PC market in coming years.

The research firm also warns that the impending impact of the arrival of Windows 8 remains difficult to define due to lack of date and price announced. The OS is still perceived as able to restore some lost demand on the consumer segment.

“The U.S. market suffered a double-digit contraction in 2Q12 as market saturation and economic factors combine with anticipation of Windows 8 and other changes later in the year. In this context, consumers are delaying purchases, and vendors and retailers are slowing down their PC activities to clear existing inventories.  The situation is exacerbated by consumer notebook saturation, a slowing replacement cycle in the commercial sector, and the big macro-economic and political events affecting confidence and spending,” said David Daoud, research director at IDC. “We don’t expect PCs using Win 8 to boost growth significantly until Q4 – which leads to a conservative outlook for the third quarter.”

Toshiba plans fusion products

One company that’s not even mentioned in the top five PC makers is Toshiba, and they recognize their ever-declining position in the consumer market.  In a bid to stay ahead of the competition, Toshiba is planning to merge computers and tablets and reorganize its TV business in Japan in an attempt to create fusion products.

The company said as a major part of the restructuring, it will consolidate TV, PC, and tablet R&D teams into one spot to create fusion products for global market.

“This integration will allow product developers to draw on TV, PC and tablet technologies and accelerate development of fusion products for the global market that meet regional needs and trends, and value-added services. The number of models of digital products and product platforms will be reviewed to bring greater efficiency to design and development and to optimize use of R&D resources,” Toshiba said in a statement.


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