Wednesday, July 18, 2007

PC Market Shares

So the latest PC market share numbers are in. No surprises here. HP retained the overall top spot followed by Dell, Lenovo and Acer. So what's interesting about this. Well for starters, we can learn a few lessons.
1. The Dell business model was good but you cannot ever be content when you are firing only on one cylinder. Dell is now attempting to sell PC's in Walmart stores and also attempting to glamorize by selling colored PC's. No innovation here and they'll be treated as also rans until they figure out something truly innovative.
2. HP was considered a spent force in the PC market. Mark Hurd did not have any oomph. The HP board really made a smart move in hiring somone who was less on sex appeal but A+ on execution. They have delivered but as we have seen this market does not treat companies sitting on existing laurels very kindly.
3. The Chinese would like to dominate this business but they do not really have a major competitive advantage apart from the fact that they probably have a better understanding of the burgeoning markets namely China and India. I don't think they'll be able to make major inroads here. We should also not rule out the Korean companies LG and Samsung. I won't be surprised if they gain strength after a few years. We all know what they did to Nokia and Motorola in the Wireless handset space.

One company that is conspicuous by its absence in the top 4 list is Apple. This company is going to be my pick as the PC company that will be in the top 2.

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