HP Closes In on Lenovo in a Consolidating Global PC Market

By Jeffrey Burt  |  Posted 2016-10-12 Print this article Print

Gartner analysts said PC shipments reached 68.9 million units, a 5.7 percent decline, and added that there are several hurdles facing system makers, including weak back-to-school sales—traditionally an important season for the PC market—and continued low demand in the consumer market, particularly in emerging countries.

Both analyst firms also noted the ongoing consolidation in the market. According to IDC, the top three PC vendors—Lenovo, HP and Dell—accounted for 58 percent of the market in the third quarter, up from 55 percent last year and 51 percent in 2014. Gartner analysts said that the top six vendors—those three, plus Asus, Apple and Acer—combined for 78 percent of shipments in the quarter. The consolidation means that the top vendors can grow their advantage over smaller players through dominating both in the supply chain and on market shelves.

It's a tight competition at the top. Lenovo in 2013 took over the number-one slot from then Hewlett-Packard (HP split in November 2015, creating PC and printer company HP Inc.). Gartner said Lenovo saw shipments decline for the sixth consecutive quarter, while both HP and Dell had shipments grow for the past two quarters.

In the third quarter, Lenovo shipped more than 14.4 million PCs, a 2.4 year-over-year decline, while HP shipped more than 14 million units for a 2.3 increase. Lenovo now has 20.9 percent of the market, while HP has 20.4 percent, Gartner said. It is an even tighter race, according to IDC's numbers, where Lenovo owns 21.3 percent of the market and HP 21.2. Dell has 14.7 percent (Gartner) to 15.8 percent (IDC).


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