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July 18, 2007 2:40 PM PDT

HP remains No. 1 in PCs

by Erica Ogg
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Hewlett-Packard continued its sprint ahead of the competition in the second quarter of 2007, remaining the No. 1 PC vendor in the world. While Dell has continued to struggle, Lenovo, Acer and Toshiba showed positive signs, each outpacing the worldwide PC market growth rate of 12.5 percent, according to IDC.

HP continued its successful run of strong quarters, leading all PC makers by shipping 11.3 million units, good enough for 19.3 percent of the overall market. Dell's global shipments were down almost 5 percent--to about 9.5 million PCs--from a year ago, but remained in second place behind HP.

Dell has taken a hard fall, though it's at least taken steps to recovery. The Round Rock, Texas-based PC maker, in trying to reclaim its momentum with consumers is now offering a line of its PCs in Wal-Mart stores, a fairly bold move and a departure from its traditional sales model. On the other hand, adding color to its notebook lineup, announced last month, is a bit of a me-too effort. In both cases there hasn't been enough time to see whether pink laptops or Wal-Mart's pull with shoppers have had any real effect on demand for Dell PC products.

Meanwhile, HP has experienced "rapid growth, and they have room to run," according to IDC analyst Loren Loverde. "If you look at where they're growing, making big strides in the U.S. despite a relatively soft market. They're clearly taking advantage of Dell's misfortunes."

Lenovo has also rebounded well. The Chinese PC maker made good strides in the second quarter, taking back its third-place mantle from Acer, which slipped down to fourth. Lenovo made up a lot of ground outside of Asia/Pacific.

"Since acquiring IBM's PC (business), Lenovo shipments outside of Asia have been declining and weren't able to get any growth," he said. "So the last couple of quarters they've been able to grow, and that's a really excellent turnaround."

In the U.S. market, Dell still leads the pack--for now. With 28.4 percent of the market, its shipments were down more than 10 percent. HP is nipping at its heels with a 23.6 percent share, followed by Gateway and Apple (both with 5.6 percent) and Toshiba with 5.3 percent, according to IDC.

Rival PC analyst firm Gartner places Acer in fourth place in the U.S. and knocks Apple down to sixth. Gartner shows Acer, which has only recently re-entered the U.S. market, with 163.9 percent growth over a year ago, shipping almost 900 million units, an astounding increase for the U.S., a market that just a few months ago was generally discouraging.

Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur. E-mail Erica.
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This could be more useful
by MadKiwi July 18, 2007 3:31 PM PDT
The methodology used for getting these market shares should be presented. Obviously they vary between IDC and Gartner as the shares they report are different. Do these analysts report based on the manufacturers figures, reported sales from retailers or what? If the latter, what about companies that don't report their retail sales directly like Apple with their Apple Stores.

At the minimum at least provide links to the actual reports.
Reply to this comment
Worldwide, Mac remains irrelevant...
by john55440 July 18, 2007 3:50 PM PDT
Once again, the Mac's worldwide share remains in the "Others" category, below HP, below Dell, below Lenovo, below Acer, and below Toshiba.
Reply to this comment
so just ignore Apple then
by Thrudheim July 18, 2007 5:38 PM PDT
If Apple is so irrelevant, then why do you waste your time
posting negative Apple comments on every single Apple-related
story? Really, all one needs to do is see john55440 and know
that the post will be some silly, tiresome remark about Apple.
These are not the actions of someone who truly feels the Mac is
irrelevant. Instead, they reek of insecurity.

The truth is that "relevance" is a function of many things,
marketshare being only one of them.

Even the biggest Windows fans should be glad that Apple is
doing well and gaining marketshare. Windows will be better
because of it. Look at IE, where innovation completely stopped
until Firefox came along. A world with 15-20% Mac marketshare
would be far better for everybody, even you john55440.
Stop dissing Apple.
by darrennah1991 July 19, 2007 2:28 AM PDT
I absolutely agree, all someone needs to know is to read your
username John55440 and know you will probably be saying some
critical remarks about Apple.

Come on, this OS/Computer fanboyism is seriously childish. Grow
up, your tiresome anti-Apple remarks is absolutely risible. Stop it.
Apple Market Share
by close5828 July 18, 2007 4:06 PM PDT
Comparing industries, Apple has more marketshare in the PC industry than BMW does in the auto industry...so what do you have against BMW?
Reply to this comment
How can you neglect to mention ...
by tomtwigg July 18, 2007 4:18 PM PDT
"... IDC has issued its latest PC Tracker market share analysis.
According to its statistics, Apple's share of the US personal
computer market grew 26.2 percent year-over-year, pegging the
company as the 4th largest vendor in terms of unit shipments with
5.6 percent of the market."
-MacNN
Reply to this comment
Apple relevant in the US
by rcardona2k July 18, 2007 7:09 PM PDT
I applaud Apple's growth in the US as well as Lenovo's comeback.
If you compare market sizes, I would certain want to be in Apple's
position instead of having #1 marketshare in West Anarctica
Reply to this comment
mac...best anyway?
by dirtfloorcracker July 18, 2007 7:57 PM PDT
we all know that mac is on an entirely different threshold. pc is on its way down, Apple sales are up 25%+
Its difficult to even compare the two. what is the Macintosh stock worth at the moment? $130
what is the Microsoft stock doing right now, not sure but i think around 30.
enough said my comrades.
Reply to this comment
Please...
by Neville Bartos July 18, 2007 11:52 PM PDT
Don't kid yourself - Apple Mac's are years away from some sort of 50/50 market share.

The important thing is Mac OS X is growing steadily, and the quality of programs available for OS X continue to improve.

Microsoft may have the quantity, but quantity doesn't always substitute for quality.
So sick of Dell everywhere. COMPETITION IS GOOD...
by technewsjunkie July 19, 2007 2:48 AM PDT
for consumers. Lower prices, more innovation.

MONOPOLIES are NOT GOOD. (Even if you own their device)
Reply to this comment
Design & Marketing
by ubnyan July 19, 2007 6:36 AM PDT
HP has gone ahead of dell by offering better designed and sleeker models at competitive prices. Dell's laptops for example are all boxy and ugly(XPS M2010) with the exception of the new M1330 which is now one of the nicest laptops around.
I think design is a big factor in sales and thats something Dell hasn't offered in years. Also unlike Dell's, HP's marketing strategy has been very good.
Reply to this comment
I'll buy H-P again.
by Des Alba July 19, 2007 7:05 AM PDT
After the disheartening experiences with my last two P4 Dell PCs, my HP Pavilion 7400-series Pentium D 930 Media Center is a pure joy to own and use. I'll be buying a brand new H-P 8100-series Media Center as soon as I can find one in my area, and give my old H-P to my granddaughter. H-P has not let me down. I'll buy H-P again.
Reply to this comment
I'm buying HP again too.
by john55440 July 19, 2007 7:45 AM PDT
My 2002 HP Pavilion desktop computer has been 100% problem free. I hope to replace it this December.

My previous computer was a Dell. Never again!
me too!
by the liquid man July 19, 2007 8:56 AM PDT
I love my HP laptop. Not a single problem with it (knock on wood)...not even a dead pixel! I recommend hp to all my friends/family. I will definitely buy a HP again.
900 million Acer Units ?
by KeithSWilson July 20, 2007 3:50 AM PDT
- do you guys proofread what you write -

"Gartner shows Acer, which has only recently re-entered the U.S.
market, with 163.9 percent growth over a year ago, shipping
almost 900 million units, an astounding increase for the U.S., a
market that just a few months ago was generally discouraging."

I'll say it's outstanding

Gartner also says that Acer has 6.8% of the market that means
that Americans buy about 14 billion units per year - what DO
you guys use these thing for? And where do you dispose of the
slightly soiled ones? Just asking.

Keith
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