Lenovo Group Loses Top PC Vendor Spot to HP

[HenryTo]

For fans of HPQ - a historically great company - it is definitely not dead yet:
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Lenovo Group Loses Top PC Vendor Spot

China's biggest personal computer company, Lenovo Group Ltd., lost its top spot as the leading PC vendor in Asia-Pacific _ excluding Japan _ in the first quarter of 2005 to Hewlett-Packard Co., the market research firm IDC Corp said.

In the three months that ended March 31, PC sales in the region rose 13 percent on year to 8.9 million units, but fell 5 percent from the previous quarter, IDC said.

HP moved into the top spot from the second position as it pushed ahead in several key markets in the region, posting 29 percent growth in the number of units sold. It had an 11.7 percent market share, up from 10.2 percent in the previous quarter.

Lenovo's fall was primarily due to seasonal sluggishness during the Lunar New Year period, as well as high levels of inventories left over from the previous quarter, IDC said.

The company's unit sales rose 20 percent on year during the first quarter and it remained the market leader in China. Its regional market share, however, slipped to 11 percent, from 13.5 percent in the fourth quarter of last year, the research firm said.

IDC said while PC shipments in China fell sequentially due to the Lunar New Year holidays, demand from China's education and government sectors continued to be robust.

Dell Inc. was the region's third-largest PC vendor during the first quarter with a 7.9 percent market share. Its unit sales increased 29 percent on year.

International Business Machines Corp. was fourth with a 6.1 percent market share, down from 7.1 percent in the previous quarter. Its unit sales fell 2.2 percent on year.

Shares of HP fell 20 cents, or 1 percent, to $20.88 in late morning trading Friday on the New York Stock Exchange. The stock has been trading at a 52-week range of $16.08 to $22.26.