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HP claws back market share

HP claws back market share

Strong retail sales have helped HP win back some of the market share it ceded to rivals in recent years, especially in the consumer laptop market.

The hardware maker’s share of the total PC market increased to 31.1 percent in 2006, according to figures released by research firm IDC.

Although this figure is only a few points up from 2005’s 30.7 percent, a boost in sales of consumer laptops in the final quarter of 2006 shored up HP’s market-leading position.

In the fourth quarter of last year, HP’s laptop sales surged 15 percent to make up 40.7 percent of the market.

Most of this growth was fuelled by sales in the retail sector and has come at the expense of direct-selling Dell, says HP SMB marketing manager Warwick Grey.

“Customers are not happy just buying online. They want to go to a store and compare their options,” he says.

Although much of HP’s growth last year was driven by retail sales, Grey says opportunities do exist for commercial resellers.

“There are around 300,000 small businesses in New Zealand who behave like consumers and buy from retailers."

HP’s channel partners can tap into this market and present these users with a wider range of product and service options, especially since retailers do not stock HP’s commercial products, says Grey.

“Business machines can be less expensive than consumer products as they do not need high-end specifications required for gaming or multimedia applications,” he says.

According to IDC, the overall PC market in New Zealand grew by 4.8 percent in 2006 with 578,788 units sold. The notebook market performed best, growing by 23.6 percent while desktop sales dropped by 7.5 percent.

HP has also pulled ahead of Dell in global PC sales. For more read this report.


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