China’s Lenovo has surpassed Hewlett-Packard Co. (HP) to become the No. 1 player in the global PC market. In the second quarter of 2013, the company’s global PC market share reached 16.7 per cent, up from 15 per cent a year ago, according to market research firm IDC.

Worldwide PC shipments totaled 7.56 crore units in the second quarter, down 11.4 per cent compared to the same quarter in 2012 but slightly better than expected. The shipment total was in line with IDC's forecast for the quarter.

“The numbers reflect a market that is still struggling with the transition to touch-based systems running Windows 8 as well as justifying ultrabook prices in the face of economic pressures and competition from tablets and other devices,” said IDC in a statement. “A silver lining is that a number of vendors and regions seemed to be focused on inventory reduction during the second quarter, which could reflect planned launches of new models as well as lower inventory going into the second half of the year. However, it also reflects some caution among vendors and the channels in the face of remaining challenges for PCs and more than a year of declining shipments.”

"With second quarter growth so close to forecast, we are still looking for some improvement in growth during the second half of the year," said Jay Chou, senior analyst, IDC Worldwide PC Tracker.

Lenovo continued its streak of gains following channel expansion and solid product development. While Lenovo continued to make impressive gains outside of Asia Pacific (excluding Japan), headwinds in China in China caused the firm's PC shipments to decline by more than 10 per cent in the Asia/Pacific region (excluding Japan), IDC said. China represents more than 50 per cent of Lenovo's PC shipments.

One positive sign is that HP and Dell saw growth improve over recent quarters, possibly indicating stronger performance in coming quarters and reflecting more commercial replacements as we get closer to the end of Windows XP support, said IDC.

By: DocMemory
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