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HP's shipments slide by a fifth as smartphones, tablets bite

HP

By Nicole Kobie

Posted on 10 Dec 2012 at 16:34

HP continues to be the leading PC maker, but its overall shipments have fallen by 20% as it fails to make any mark in smartphones or tablets.

That's according to data from analyst firm IDC, which has lumped together all "smart connected devices" - tablets, smartphones, and PCs - to reveal which firms are really on top of tech device sales.

Overall, sales of those products were up 27.1% year-on-year in the third quarter, to 303.6m shipments with a total revenue of $140.4bn dollars. That climb is expected to continue, with the fourth quarter predicted to grow by a similar amount.

While Samsung, Apple and Lenovo have all grown share over the past year, HP, which is virtually non-existent in the mobile space, has dropped its share

That sales success is down to tablets and smartphones, which are up 55.8% and 39.5% respectively, while PC sales are slightly down.

None of that is good news for HP, however. Thanks to success with smartphones and tablets, Samsung and Apple have grabbed the number one and two rankings for global shipments, with 97.5% and 38.3% growth respectively. Lenovo posted 60% annual growth to grab third place, while Sony was up by a quarter to nab fifth.

HP claimed fourth spot, but is the only company in the top five to lose market share, falling 20.5% compared to the third quarter last year.

"While Samsung, Apple and Lenovo have all grown share over the past year, HP, which is virtually non-existent in the mobile space, has dropped its share from 7.4% in 3Q11 to 4.6% to 3Q12 with shipments declining 20.5% during that time," IDC said.

That trend looks set to continue, unless HP can either kick-start PC sales or find a place in tablets and smartphones. IDC predicts PC market share will fall from 39.1% this year to 19.9% in 2016, with desktop sales flat and laptops registering 31.1% growth.

IDC admits the comparison between devices that sit on your desk versus those that slip into your pocket is somewhat unfair, pointing out that most buyers, whether consumers or businesses, are buying both.

Falling prices

The move from PCs to mobile devices is affecting prices, too. "The shift in demand from more the more expensive PC category to more reasonably priced smartphones and tablets will drive the collective market ASP [average selling price] from $534 in 2011 to $378 in 2016," the report said.

Apple is ranked second in terms of unit shipments, but its average selling price was well above rivals at $744 across all its devices, meaning it leads the industry in terms of revenue, with $34.1bn in the third quarter alone, IDC said.

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User comments

Analysts.....

It's amazing all the conclusions analysts come to these days. Put two and teo together and get 4. Amazing.

So it could have nothing to do with HP selling most of their PCs to corporate customers rather than retail? Companies who are most likely putting off refreshing their technology in these tight financial times? Yes smartphones and tablets will eat into desktop sales to s certain extent but they are not replacing them.....yet.

By everton2004 on 10 Dec 2012

Apotheker was right

HP needs to look for profitabilty if it is to survive; relying on printer sales to prop up poor strategy in other areas isn't sustainable for ever.

This is especially true since with Tablets in many cases replacing printed documents printer profitability and consumables sales will also suffer as more business deploy tablets to save on printing costs.

HP may rue the day they gave up on services sales...

By SwissMac on 11 Dec 2012

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