Lenovo Knocks HP Off The PC Mountain And Becomes New King
October 11, 2012

Lenovo Knocks HP Off The PC Mountain And Becomes New King

Enid Burns for redOrbit.com — Your Universe Online

It appears the backlash against goods manufactured in China does not apply to computers. Chinese-owned Lenovo Group surpassed sales of Hewlett-Packard, the top computer manufacturer for the past six years, according to a report from Gartner Group, the world's leading tech research and advisory firm. While Lenovo now accounts for the most shipments in the PC industry, the overall PC market declined 8 percent in third quarter 2012.

Worldwide PC shipments amounted to 87.5 million units in the third quarter, down from 95.4 million PCs shipped in the same period last year.

"A continuing slowdown in consumer PC shipments played a big part in the overall PC market decline," said Mikako Kitagawa, principal analyst at Gartner, in a report. "The third quarter was also a transitional quarter before Microsoft's Windows 8 operating system release, so shipments were less vigorous as vendors and their channel partners liquidated inventory."

It remains to be seen whether Microsoft's launch of Windows 8 later this month will boost sales of PCs for the fourth quarter.

"Retailers were conservative in placing orders as they responded to weak back-to-school sales. By the end of September, retailers were focused on clearing out inventory in advance of the Windows 8 launch later this month," said Kitagawa. "On the professional side, there was minimum impact from Windows 8 in the quarter because the professional market will not adopt Windows 8 PCs immediately after the release."

While shipments declined overall, Lenovo fulfilled more orders in Q3 2012. Lenovo shipped 13.8 million PCs, compared to 12.5 million during the same period last year, which included back-to-school sales. The increase in shipments for Lenovo brought the company to 15.7 percent market share, up from 13.1 percent. That accounts for a 9.8 percent increase from the year before.

In the same period, the overall PC market experienced an 8.3 percent slide. Hewlett-Packard may be the hardest hit. The company experienced a 16.4 percent market drop. The company went from holding 17 percent market share, to 15.5 percent market share in quarter-on-quarter recording. HP, which has been the top PC manufacturer in terms of shipments for the past six years, shipped 13.6 million PCs in the third quarter, compared to 16.2 million in the same quarter last year.

Dell held onto position three with 10.5 percent of the market, though the company's shipments also saw a decline of 13.7 percent. The only manufacturer in the top five other than Lenovo to see growth was ASUS. ASUS saw 11.8 percent growth to hold the fifth spot. The company reported shipments of 6.4 million, up from 5.7 million for the third quarter in 2011.

While Lenovo is top worldwide, the Gartner report still shows HP, Dell and Apple ahead of Lenovo in the U.S. market. Lenovo is gaining and accounts for 6.1 percent growth in the U.S. market for PC vendor shipments. The Chinese manufacturer shipped 1.4 million PCs in the third quarter this year, compared to 1.3 million last year. The numbers are small, but it brought Lenovo from 7.2 percent market share to 8.9 percent, due to lower shipment volumes from other manufacturers.