The global PC market finds new standings--No. 1 HP, No. 2 Acer, No. 3 Dell, and No. 4 Lenovo--based on global PC shipments. Consumers do not go to stores to look at Hp, Dell, and Apple computers any more but instead are looking at other brands. In the past, the concern for which laptops to buy was obvious--buy an HP, Apple, or Dell--today, it is Lenovo or Acer. Asian-based companies like Acer and Lenovo are emerging as contenders in the global PC market while companies like Dell are passing away. This may be due to management changes, streamlining, and refocusing. Lenovo is using aggressive pricing and product differentiation to command a greater percent of the market.
While Dell management is shutting down plants, Lenovo is pursuing aggressive pricing, bundling, and new technology. The new developments in the ThinkPad division, such as the notebook PC is only the beginning. Lenovo laptops have drainage holes to prevent drink spills from damaging interior components and the LCD screen has an antenna as big as the screen to provide for better wireless reception. Moreover, the hardware is engineered for reliability and as a result boasts lower failure rates. Furthermore, AT&T has teamed up with Lenovo to offer tech support designed to help small and medium sized businesses. A 24-by-7 tech support from AT&T bundled with a laptop or desktop may just be the ticket an entrepreneur needs to get his business up and running.
So, if I were a betting man I would bet on Lenovo. My only question is do they merge? As we know from Industrial Organization, fewer firms in an oligopoly generate greater profits. In the end, it is all about price competition and brand loyalty and it seems HP has that market cornered.
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