HP "doesn't want to drive" netbook market

 

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By Barry Collins

Posted on 25 Feb 2009 at 15:31

HP has shrugged off the lead opened up by rivals Acer and Asus in the netbook market.

The latest IDC figures claim netbooks account for a fifth of all laptop sales, but the world's biggest PC maker is something of a netbook minnow.

HP commands only 7% of the market, putting it a distant third behind leader Acer (30%) and Asus (28%).

However, the vice president of HP's personal systems group in the UK is unperturbed by the company's flagging position. "Asus saw that [netbooks] as an opportunity to drive early," he told PC Pro. "From our point of view, we benefit from a strong PC line up and have a presence there [in netbooks].

"We think those devices are not suitable for all needs," Wright added. "They are a very good device for people who just need a device on the move.

"They are an important part of the market. I don't think it's the market. We want to be present but we don't want to be driving that market."

Buying on trust

Wright did concede the PC market was tough at present, with the company reporting a 19% decline in revenue in the personal systems group in Q1.

He predicted that there will be fewer PC brands on the market by the time the recession lifts. "On the PC side, we will see consolidation in that business," he said. "Other people are finding it tough to make money. You have to think some of them will exit the market at some point."

Wright's boss, UK managing director Steve Gill, said people were increasingly turning to the big brands. "We're seeing a flight to quality," Gill claimed. "Customers are looking to have a relationship with a partner or provider that they have high confidence will still be there in one, two three, four, five six or seven years' time."