Chinese firm Lenovo is now the number one computer maker in the world, toppling the big American company Hewlett-Packard Co during the third quarter. The data presented by research firm Gartner slightly put Lenovo ahead of HP when it comes to worldwide sales of computers.
Gartner’s rival, IDC, ranks HP ahead of Lenovo by less than half a percentage point in the same category. In any case, data from both research houses show the struggles of HP against its close competitor. Meg Whitman is currently at the helm of HP as she tries to find a way to drive the growth of the 73-year old company.
Total volume of personal computer sales around the world decreased by over 8 percent during the third quarter due to several factors like vendors and retailers dumping their older inventory in anticipation of the launch of the new Windows 8 operating system, slowing economy, and the increasing popularity of mobile gadgets like tablets.
Last year saw the growing demand for mobile gadgets as more and more consumers bought more smartphones and tablets instead of the traditional personal computers.
Other Asian PC makers like Taiwan’s Acer are slowly chipping away share from traditional American PC manufacturers like HP and Dell, which was able to held on to its number 3 spot during the third quarter.
Lenovo has a market value of $8.2 billion. It said that there is still room for more growth in the PC sector at this time.
A prepared statement of Lenovo chief Yuanqing Yang says: “We are establishing even deeper roots in each major market around the world. In addition to localized sales and distribution teams in major markets, we are establishing an even stronger manufacturing footprint.”
Lenovo has recently acquired the Brazilian electronics manufacturer CCE for $148 million and U.S. cloud computing company Stoneware.
Lenovo’s strong position in the PC sector is one of the indications that Chinese tech companies are on the rise due to a myriad of factors including foreign acquisitions, aggressive pricing, and favorable home market.
Lenovo’s sudden rise to stardom was initiated with its acquisition of IBM’s personal computer division way back 2005. The company gradually rose and took the top spot by making a market share growth of 15.7 percent. It shipped about 13.77 million computers during the third quarter, a figure 10 percent higher than its sales about a year ago, according to Gartner.
HP’s worldwide PC sales numbers at 15.5 percent, shipping 13.55 million units in the quarter. This is 16.4 percent lower than its sales about a year ago. Gartner noted that this is the first time that HP failed to rank as the number one PC vendor since 2006.
Industry analysts say the PC sector is struggling as the overall demand for PC hardware slows down, even in the home turf of Lenovo, China. The future of the PC is still unclear due to the growing popularity of ultra-portable devices that offers functions for personal computing.