HP Becomes World’s Largest PC Maker

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HP Becomes World’s Largest PC Maker

HP had a great quarter when it came to PC sales. The company did exceptionally well in North America which basically helped it beat traditional market leader Lenovo. The quarter for PC shipments was tough for all manufacturers, but there was good news for HP which managed to edge out Lenovo to once again achieve the title of world’s largest PC maker according to IDC.

The market grew

There were 60.3 million PC shipments during the first quarter of 2017 which grew just 0.6 per cent compared to the same time frame in the previous year. IDC had been forecasting a drop of 1.8 per cent in PC shipments so positive growth suggests the PC market is recovering. This was the first quarterly positive growth in PC shipments for the first time since the first quarter of 2012.

Lenovo suffered

Lenovo had been the world’s biggest manufacturer of PC’s since 2013 and has had an iron grip on that position. HP however regained the top spot this quarter boosted by a larger number of laptop shipments worldwide. So now the question becomes one of whether HP can continue to hold that spot.

Gartner had different results

Another survey conducted by Gartner suggests that Lenovo remains the world’s top PC maker. There is inconsistency between the IDC and Gartner numbers because of the way to two company’s measure PC shipments. Gartner for example does not count Chromebook shipments in its survey. Gartner reckons that during the first quarter 2017, 62.2 million units were shipped, which is down 2.4 per cent for the same time period during the previous year.

PC prices are rising

Despite their differences, analysts at both companies agreed that rising prices have held back PC shipments. This was due to shortages of DRAM and NAND. The costs of components are expected to increase further in the coming quarters which could affect PC prices. Rising prices however are not expected to stop PC shipments from increasing later this years. Businesses are widely expected to upgrade to the latest PC’s for example.

Taking a beating in North America

Lenovo took a beating in North America which is why IDC says it lost its top position in its quarterly survey. PC shipments also did well in Europe whilst demand in Asia-Pacific was tepid. HP has slashed the cost of its low-priced PC’s and has focused on the high end of the market. Lenovo has been innovative with its PC’s like the Yoga but its domestic market China had weak demand.

Dell rounds out the top three

IDC estimates that HP’s global shipments totalled 13.1 million unit and grew a whopping 13.1 per cent year on year giving it a 21.8 per cent market share. Lenovo shipped a total of 12.3 million units according to IDC and grew by just 1.7 per cent. Dell came in third place but managed to grow its shipments by 6.2 per cent.

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