updated 06:27 am EDT, Mon July 16, 2012
Lenovo expected to overtake HP for no. 1 PC maker spot
Lenovo is tipped to take the no.1 PC maker crown from HP sometime this year, reports Reuters. It was only as recently as September 2011 that the Chinese manufacturer moved into the number three spot, relegating Acer to the number four spot. If it does overtake HP, it will become the first Chinese technology company to take the top slot in any major technology segment and will mark a rapid rise for the Beijing-based company.
Lenovo has been able to increase its shipments in a sector that has remained flat globally for the past several quarters. According to IDC's figures, HP share has slid to 15.5 percent, while Lenovo's share of the global PC market has increased to 14.9 percent - figures from Gartner place Lenovo even closer, trailing by just .2 percent. Although it has not made significant inroads into the US market, which remains an area of opportunity for the company, it has made big leaps on the back of the domestic growth in China.
However, analysts caution that Lenovo's growth has come at the expense of profit margins, with a large portion of its sales going to enterprise buyers keen on keeping costs down. HP for its part has seen its shares dip to their lowest point in seven years on the back of the news Lexmark expects the printer market to contract. In addition to PCs, HP draws 20 percent of its revenue from printer sales. To help trim costs, HP said in March that it would merge its PC and printer divisions.