The U.S.-based information technology (IT) research firm
International Data Corporation ('IDC') forecasts yet another year
of expected decline in the PC market. After witnessing a tough
2012, IDC predicts year-over-year shipment decline of 1.3% in
2013, as against the previous expectation of 2.8% growth. But the
projected decline is somewhat better than a decline of 3.7%
registered in 2012.
The year 2012 was a difficult one for the PC industry mostly due
to the growing popularity of tablets, slow adoption of
) Windows 8 and ongoing macro uncertainties, reflected by a soft
holiday season and a tough IT spending environment. IDC also
noticed a declining trend in the emerging markets as their
transformation into matured markets is limiting growth.
) occupied the leading position with respect to shipments and
market share. H-P was followed by Lenovo and
IDC expects most of the factors pulling down the PC market to
persist in 2013 but expects better statistics from the emerging
markets. Moreover, the research firm forecasts a better second
half of 2013 buoyed by potential wide acceptance of Win 8 and a
likely PC refresh cycle.
The declining PC market has forced Hewlett-Packard and Dell to
diversify. Recently, H-P introduced a host of new offerings
including a new BPO (business process outsourcing) solution,
three desktop printers and two media players. H-P is also trying
its luck with Slate 7, a tablet running on
) Android platform.
Both H-P and Dell are also craving for a wider exposure in the
high-margin server, storage, networking and cloud computing
markets. For this purpose, the companies have acquired a number
of cloud-based software and hardware companies.
Currently, H-P has a Zacks Rank #2 (Buy) mainly due to its new
offerings, its decision to divest WebOS and re-launch its tablet.
On the other hand, Dell, which has filed for a leveraged buyout,
has a Zacks Rank #3 (Hold).
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