PC epicenter shifts to Asia as Dell, HP and others regroup

February 18, 2013

Asia is fast becoming the epicenter of the PC market as Chinese and Taiwanese companies challenge the turf occupied for more than a decade by prominent U.S. PC makers Hewlett-Packard and Dell, whose laptop and desktop shipments are stumbling. Lenovo, Asus, and Samsung are increasing PC shipments at the expense of U.S. companies even as the demand for laptops and desktops slows. Asian companies have taken advantage of low-cost manufacturing capabilities as well as proximity to the component supply chain and burgeoning markets like China to grow faster than their U.S. counterparts, industry observers said. Sales still short Demand for PCs has dropped with the emergence of tablets and smartphones, lack of innovation and flagging economies. The PC business at HP and Dell—in first and third place, respectively, for global PC shipments—are struggling as the companies focus on high-margin enterprise offerings. This puts Asian firms, which are developing innovative consumer products, in a better position to lead the volume PC market. IDC is projecting annual worldwide PC shipment growth of just 2.8 percent year-over-year for 2013, and single-digit growth once again in 2014. This comes after a rough 2012 in which PC shipments fell by 3.2 percent compared to 2011. PC shipments fell for HP and Dell, which were hurt by the weak economies in the U.S. and Europe. Lenovo, Asus, and Samsung bucked the trend by increasing worldwide PC shipments last year, even in the U.S. market. To read this article in full or to leave a comment, please click here

Link: http://www.pcworld.com/article/2028584/pc-epicenter-shifts-to-asia-as-dell-hp-and-others-regroup.html