* Global PC shipments slump 11 pct in Q2
* Fifth quarter of decline as consumers switch to tablets
* PC market expected to continue to fall but pace to
By Noel Randewich and Lee Chyen Yee
SAN FRANCISCO/SINGAPORE, July 10 China's Lenovo
Group Ltd unseated Hewlett-Packard as the
world's top PC maker in the latest quarter - a quarter which saw
global shipments tumble 11 percent from a year earlier due to
spectacular growth in tablets and smartphones.
It was the fifth straight quarter of decline and analysts
expect PC shipments to continue to fall, albeit at a slower pace
as companies upgrade to Windows 8 and buy laptops that can be
separated from keyboards to become tablets.
Lenovo now commands 16.7 percent of the world's personal
computer market, up from 15.3 percent in the previous quarter
according to research firm IDC. It has spent heavily over the
past few years to bolster its PC business with purchases such as
Brazilian electronics maker CCE last year, Germany's Medion in
2011 and IBM's PC business in 2005.
As smaller vendors lost share, HP also rose, climbing to
16.4 percent from 15.7 percent. But the U.S. firm has ceded
ground to Lenovo as it grappled with numerous changes in
executive leadership in recent years, leading to strategic
mistakes, analysts said.
Worldwide PC shipments totaled 75.6 million units in the
second quarter, down 11.4 percent compared to the same quarter
in 2012 but slightly better than expected, IDC said.
The waning fortunes of the $200 billion PC market, has
prompted some PC vendors, such as Lenovo, to diversify into
smartphones, tablets and other mobile gadgets, as well as into
the enterprise sector, such as servers.
"Based on our (smartphone) success in China, we will slowly
roll out in different markets. Tablets are part of our overall
PC-plus portfolio," Lenovo CFO Wong Wai Ming told Reuters in a
Analysts at CLSA said in a report they expect the PC market
to emerge from a trough in the second quarter, adding that
volumes are likely to decline by 7 percent this year and 4.5
percent next year.
On Thursday, Lenovo's Hong Kong-listed shares and Acer Inc's
's Taipei stock rose by about 5 percent, outperforming
HP's 1.9 percent rise and Dell Inc 's 0.2 percent fall.