Acer has filed a lawsuit against its former chief executive officer Gianfranco Lanci for allegedly violating a non-compete agreement. Lanci left Acer last March after the company hit a rough patch and was recently named head of Lenovo’s operations in Europe, Africa and the Middle East. “We believe Mr. Lanci has clearly breached the terms of the non-compete agreement he entered into willingly . . . we believe we have a very robust case,” Acer said in a statement given to the Financial Times. The Financial Times notes that Acer has fallen from the second to the fourth largest computer maker in the world while Lenovo has seen recent success and has risen to the No.2 spot.

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Apple pulled ahead of HP in the fourth quarter to become the largest player in the client PC market, a new report suggested Monday. The Cupertino-based company shipped more than 15 million iPads and 5 million Mac computers last quarter, and those figures represented 17% of all PCs shipped around the world during the fourth quarter. The report, which comes from market research firm Canalys, said PC shipments grew 16% annually to reach 120 million during the quarter, and the firm’s categorization of “PC” includes desktops, notebooks, netbooks and tablets in its figures. Tablets drove PC growth, however, and Canalys said the market would have declined by 0.4% without taking tablets into consideration. Read on for more.

Overall, Acer, Dell and HP lost market share while Apple and Lenovo increased their respective shares. “Currently, HP is pursuing a Windows strategy for its pad portfolio, producing enterprise-focused products, such as the recently launched Slate 2, until the launch of Windows 8,” said Canalys analyst Tim Coulling. “However, questions remain over Microsoft’s entry into the consumer pad space. While early demonstrations of the Window 8 operating system seem promising, Microsoft must focus its efforts on creating an intuitive user experience that is far less resource intensive.”

Another Canalys analyst, Michael Kauh, said that he expects to see “limited adoption” of new thinner and lighter Intel-powered ultrabooks during the first half of this year but that adoption should increase in the second half as prices fall. ”In the short term though, vendors will experience more pressure in the netbook and notebook segments, especially with Apple’s annual iPad refresh approaching,” Kauh said. Canalys’s full press release follows below.

Apple storms past HP to lead global PC market

120 million PCs shipped globally in Q4 2011, up 16% year-on-year

Shanhai, Palo Alto, Singapore and Reading – Monday, 30 January 2012

Canalys today announced that Apple, after reporting stellar results, became the leading worldwide client PC vendor in Q4 2011. Apple shipped over 15 million iPads and five million Macs, representing 17% of the total 120 million client PCs shipped globally in Q4. Overall, the total client PC market, including desktops, netbooks, notebooks, and pads grew 16% year-on-year. Excluding pads, the client PC market declined 0.4%. The floods in Thailand, that impacted hard drive assembly plants, caused mild disruption to shipments during the quarter, but the side effects are likely to be felt in the first half of 2012.

Among the other top five PC vendors, only Lenovo managed to increase its market share, by a relatively modest two points, compared to Apple’s six-point gain over the same quarter a year ago. Acer, Dell and HP – the hardest hit – all lost market share.  Now the second largest client PC vendor worldwide, HP will struggle to compete with Applefollowing the end of its Touchpad.

“Currently, HP is pursuing a Windows strategy for its pad portfolio, producing enterprise-focused products, such as the recently launched Slate 2, until the launch of Windows 8,” said Canalys Analyst Tim Coulling. “However, questions remain over Microsoft’s entry into the consumer pad space. While early demonstrations of the Window 8 operating system seem promising, Microsoft must focus its efforts on creating an intuitive user experience that is far less resource intensive.”

Lenovo continued to close the gap on HP, thanks to successful investment outside of core markets. The acquisition of Medion in Germany helped Lenovo double its shipments in Western Europe during the second half of 2011. The vendor’s decision to use Android for enterprise and consumer pads gives it a better opportunity than HP to continue gaining market share.

Dell placed fourth among the top five PC vendors, followed by Acer. Acer’s shipments continued to decline, as a result of the pad’s impact on the netbook market. It did, however, make headlines at the 2012 International Consumer Electronics Show in January, when it revealed its S5 Ultrabook. Unsurprisingly, Acer and other vendors have been quick to announce their support for the new Ultrabook form factor, with the view of driving innovation and renewed customer interest in notebooks.

“We expect Ultrabook volumes to see limited adoption through the first half of 2012, before finally gaining momentum later in the year as price points decline and Intel launches a new line of processors and embarks on an aggressive marketing campaign,” said Canalys Research Analyst Michael Kauh. “In the short term though, vendors will experience more pressure in the netbook and notebook segments, especially with Apple’s annual iPad refresh approaching.”

Pads accounted for 22% of total PC shipments during Q4 2011. In addition to Apple’s strong performance, the Amazon Kindle Fire and the Nook Tablet by Barnes and Noble boosted volumes in the U.S. market, allowing both vendors to claim spots among the top five worldwide pad makers, in second and fifth place respectively.

All regions grew year-on-year with the inclusion of pads. Excluding pads, however, shipments in Europe, Middle East and Africa and North America declined, due to weaker consumer demand in Western Europe and the United States, despite the traditional Q4 sales periods. Vendors and channel partners took a cautious approach to inventory levels in Q4, as many had expected a slow quarter. Notebook volumes grew slightly, at approximately 1% in these regions, but continued their impressive rise in Asia Pacific and Latin America, as more consumers embraced mobile computing.

“The consumerization of IT continues to be a significant disruptive force in the PC industry, but many of the leading vendors have failed to capitalize on the trend to date,” said Coulling. “This year will be a pivotal year for those vendors that were slow to launch pads. It is not just the product that they need to get right, business models are equally important – driving revenues from content delivery can help vendors reach lower price points in a market that is incredibly price sensitive.”

Apple is now the largest buyer of semiconductors in the world, according to market research firm Gartner. The Cupertino-based company trailed both Samsung and HP in 2010, however Apple’s spending is estimated to have jumped 34.6% in 2011. The company spent $17.3 billion on semiconductors in 2011, or 5.7% of the total share of chip purchases. Coming in second was Samsung, which spent $16.7 billion or 5.5% of all chip purchases, and HP came in third with $16.6 billion. Leading electronics manufacturers spent a total of $105.6 billion on semiconductor purchases last year, representing a year-over-year increase of $1.8 billion. ”The major growth drivers in 2011 were smartphones, media tablets and solid-state drives (SSDs),” said Masatsune Yamaji, principal research analyst at Gartner. “Those companies that gained share in the smartphone market, such as Apple, Samsung Electronics and HTC, increased their semiconductor demand, while those who lost market share in this segment, such as Nokia and LG Electronics, decreased their semiconductor demand. Media tablets were also a growth driver for the semiconductor market throughout 2011.” Gartner’s press release follows below.

Gartner Says Apple Became the Top Semiconductor Customer in 2011
Top 10 Original Equipment Manufacturers Represented $105.6 Billion of Semiconductor Demand, Accounting for 35 Percent of Total Semiconductor Chip Revenue in 2011

STAMFORD, Conn., January 24, 2012—

Leading electronic equipment manufacturers remained the center of the semiconductor world in 2011, accounting for $105.6 billion of semiconductors on a design total available market (TAM) basis — 35 percent of semiconductor vendors’ worldwide chip revenue, according to Gartner, Inc. This represented a year-over-year increase of $1.8 billion, or 1.8 percent from 2010.

Design TAM represents the total silicon content in all products designed by a certain electronic equipment manufacturer or in a certain region, while purchasing TAM represents the total silicon content purchased directly by a certain electronic equipment manufacturer or in a certain region. Design TAM is a useful index for semiconductor vendors when they are considering how to allocate their sales or field application engineer resources by customer or region. Purchasing TAM is a useful index for semiconductor vendors when they are considering how to establish an efficient distribution network by customer or region.

“The major growth drivers in 2011 were smartphones, media tablets and solid-state drives (SSDs),” said Masatsune Yamaji, principal research analyst at Gartner. “Those companies that gained share in the smartphone market, such as Apple, Samsung Electronics and HTC, increased their semiconductor demand, while those who lost market share in this segment, such as Nokia and LG Electronics, decreased their semiconductor demand. Media tablets were also a growth driver for the semiconductor market throughout 2011.”

“Given the rapidly changing competitive structure of the IT and electronics industry, no semiconductor device vendor can afford just to monitor the requirements of the current market leaders,” Mr. Yamaji said. “Vendors need to be constantly looking for new market entrants who will, in turn, be tomorrow’s market leaders.”

Within the top 10 rankings, three companies were from the Americas, three from Asia/Pacific, three from Japan and one from Europe, the Middle East and Africa (EMEA). Apple led the market in 2011 (see Table 1), achieving significant growth, as it has done for the past five years. As a result, Apple became the biggest customer of semiconductor chip vendors in 2011, climbing two places in the ranking, from third in 2010.

Apple gained a much greater share of the smartphone market, and its media tablet business was also highly successful in 2011. While DRAM prices fell drastically in 2011, and many PC vendors decreased their total semiconductor demand accordingly, the success of the MacBook Air enabled Apple to increase semiconductor chip demand even in its PC business.

Mr. Yamaji said that as more brand-name companies are increasing their production outsourcing to original design manufacturers (ODMs) and electronics manufacturing services (EMS) providers, semiconductor procurement by ODMs and EMS providers has increased year over year. Currently, three of the top 10 purchasing TAM companies are so-called contract manufacturers.

“Semiconductor chip vendors must pay attention not just to the design TAM and purchasing TAM by company, but also by region,” said Mr. Yamaji. “This is the key to avoiding inappropriate sales resource allocation. They must keep an eye on design-win opportunities in the U.S., while also establishing a strong distribution network in China.”

Acer, Asus and Lenovo will reportedly begin selling ultrabooks equipped with Intel’s fast and versatile Thunderbolt I/O port, which combines DisplayPort and PCI Express, during the second quarter of 2012. DigiTimes said mostly high-end computers will adopt Thunderbolt this year since it now costs more than $20 to add Thunderbolt connectivity to a computer. Apple was one of the first companies to adopt Thunderbolt and it currently equips a number of its computers and displays with the technology. A recent patent filing also suggested Apple may begin using Thunderbolt in iOS devices, too.

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We swung by Intel’s booth to check out the Lenovo K800 during the Consumer Electronics Show on Wednesday. The Lenovo K800 is the first commercial device to launch with Intel’s brand new Medfield mobile processor. It currently runs Android and, unfortunately, all of the menus were in Chinese so it was a bit hard to navigate. Still, it was noticeably fast and we love Lenovo’s hardware design. The phone felt solid but still was able to be extremely thin. It offers an 8-megapixel camera and the Medfield platform technically supports shooting of up to 15 frames per second, although Lenovo wasn’t sure if the camera on the K800 was actually capable of doing that. It doesn’t appear that there are any plans to deliver the K800 to the United States at this point in time, but we’re sure to see Medfield devices from Motorola in the coming year. Check out our full gallery below.

Lenovo and Intel took the stage at the Consumer Electronics Show on Tuesday to announce the world’s first Intel-based smartphone, the Lenovo K800. The device features a 4.5-inch HD 720p display and is heading first to China’s Unicom network during the second quarter of this year. Additionally, the K800 sports a 1.6GHz Intel processor and an 8-megapixel rear camera. Lenovo hasn’t announced when or even if the device will be available stateside.

Ahead of the company’s Consumer Electronics Show keynote, Lenovo announced a flurry of Android-based devices on Sunday evening. First up is the new S2 smartphone, and while it doesn’t feature a much anticipated quad-core chipset, the specs are more than suitable. The S2 sports a 1.4GHz dual-core Snapdragon processor with a VGA front-facing camera and 8-megapixel rear shooter. The device will run Android 2.3 on a 3.8-inch display with Lenovo’s custom skin on top. The company also announced a new Android 4.0 tablet, the IdeaTab S2, featuring a 1.5GHz dual-core Snapdragon processor, 1GB of RAM and a 10.1-inch 1280 x 800 IPS display. The IdeaTab will be released with Android 4.0 Ice Cream Sandwich and have a docking ability similar to what ASUS has done with the company’s Transformer tablets. When connecting the tablet to the keyboard dock, the IdeaTab gains 9 hours of battery life for a total of 18 hours, access to two USB 2.0 ports, a multitouch trackpad and an SDHC card reader.

Lastly, the company announced the 55-inch 3D K91, the world’s first smart TV running Android 4.0. The K91 features a dual-core Snapdragon processor, HDMI, Wi-Fi, an SD card slot, and a 5-megapixel front facing camera. The K91 is not considered a Google TV device, however, but it has access to the Android Market and Lenovo Store for thousands of apps. The IdeaTab S2 tablet, S2 smartphone and K91 smart TV are currently available in China, with worldwide availability coming at a later date. Lenovo’s press release can be found after the break.

Four Screens Are Better than One with Lenovo’s New “Personal Cloud” Vision
Latest Product Development Links Gadgets in Pockets, Briefcases and Home

CES 2012, Las Vegas – January 8, 2012: Lenovo (HKSE: 992) (ADR: LNVGY), the world’s number two PC company, is flexing its innovation muscle at this year’s Consumer Electronics Show and beyond, to create a seamless digital experience for its customers across multiple devices, be it PCs, tablets, smartphones or Smart TVs. Lenovo recently unveiled its “Personal Cloud” vision, marking the transformation of the company from a “personal computer” manufacturer to a “personal cloud solution” provider that integrates hardware, software and cloud computing together. The Company’s direction is evident in a variety of new products, including the IdeaTab S2, Smartphone S2 and K91 smart TV.
“Lenovo is breaking down the barriers of device differentiation and weaving together hardware, software and cloud services that are connected, experiential and dynamic,” said Liu Jun, senior vice president and president, Mobile Internet and Digital Home business group. “We understand our users need more than just the traditional keyboard and screen for a truly satisfying digital experience. Our Personal Cloud vision integrates all devices, from tablets to TVs, for a comprehensive mobile Internet experience anytime, anywhere.”
IdeaTab S2 10 Struts New Specs and Multimedia Prowess
Thinner than its predecessors, the IdeaTab S2 10-inch is just one-third of an inch thin and, at a feather-light 1.1lbs, is one of the lightest 10-inch tablets available today. IdeaTab S2 features the new Qualcomm Snapdragon 8960 dual core CPU and Android 4.0 operating systems to offer a better multimedia experience. Running Lenovo Mondrian UI, the user-friendly IdeaTab S2 10” displays customized content and includes easy access to the Lenovo App Shop and the Android Market for thousands of useful apps, such as Amazon Kindle, ooVoo, Angry bird and mSpot. Its detachable design, combined with a light keyboard dock, can deliver an incredible 20 hours of battery life, which is great for both entertainment and productivity.
S2 Smartphone Boasts Security and Photography Creds
The S2 smartphone includes the latest Qualcomm Snapdragon technology and Android 2.3 operating system. The device includes a unique Kernel-level security system to protect personal data, prevent phishing, and control network and SMS traffic. Users can also take advantage of its 8MP super camera to capture amazing panoramic photos on the go. S2 is also ready for the Cloud, and instantly syncs photos, music, videos and personal information with a dedicated online storage space for easy sharing across multiple devices.
K91—the World’s First Smart TV to Run Android 4.0 OS
As the world’s first smart TV powered by QualComm’s 8060 Snapdragon dual core CPU, the K91 is also the world’s first smart TV running the Android 4.0 operating system – which will revolutionize technology in the living room. Its smart “Sandwich” UI unites three major smart TV functions, including Video On Demand (VOD), Internet applications and traditional TV programs. The online HD VOD is tailored to an individual consumer’s viewing history, and delivers the best picture and audio quality with 3D FPR technology delivering flicker-free video on a full HD IPS panel at 240hz with SRS TruSurround. Internet applications include thousands of choices from the Android Market and Lenovo Store, including console games. Additional smart TV features include voice control with natural language processing and speech recognition technology, allowing viewers to use voice commands to control the remote. Video interaction is even possible with the built-in 5MP webcam, which integrates face recognition technology for security benefits and advanced parental control. With cloud support, consumers can access their favorite songs and videos with ease, share files between the TV and their tablet, smartphone or PC, and even control the TV via tablet and smartphone.
The IdeaTab S2 tablet, S2 smartphone and K91 smart TV are available immediately in China. Lenovo will be releasing these products worldwide at a later date. More information on these products is available at www.lenovo.com

Top personal computer vendors Acer and Lenovo are each preparing to launch Windows 8 tablets in the third quarter, a new report claims. Citing anonymous sources from within Asia-based component suppliers, DigiTimes on Monday reports that the PC makers are working on new tablets powered by Windows 8 and Intel’s upcoming “Clover Trail” chipsets. Intel is set to show off a variety of Medfield-powered smartphones and slates as the Consumer Electronics Show next week, but its Clover Trail chips are reportedly being eyed by PC vendors as a more powerful option offering better performance and more efficient power consumption. DigiTimes reported last week that devices utilizing Intel’s Clover Trail chips would not launch until the fourth quarter this year, but the site now points to a new timeline for Intel’s new platform.

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Handset makers in China have formed an alliance to prepare for possible patent battles with Apple, Microsoft and Nokia. Coolpad, Konka, TCL, ZTE and Lenovo were among the companies named in a report by DigiTimes on Friday. The number of lawsuits filed in China is expected to increase as Microsoft, Nokia and Apple try to increase market share there, the report says. Nokia has already filed patent infringement suits against several Chinese phone makers and Microsoft has gone after Huawei to try to secure a patent licensing deal. Huawei responded to Microsoft’s threats in early November and explained that it has 65,000 patents worldwide. “We have enough to protect our interests,” Huawei Devices chief marketing officer Victor Xu said. “We are a very important stakeholder in Android.” Each of the Chinese companies reportedly has a large patent portfolio and, combined, they could create enough of a force to stave off at least some of the patent-related lawsuits that have plagued other companies.

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Microsoft’s next operating system, Windows 8, will be the first Windows desktop OS capable of running on both x86 and ARM-based processors. However, a report from DigiTimes on Monday suggests that major Taiwanese vendors such as ASUS may not have a role in developing the new machines at all. It was originally thought that ASUS may have had plans to release an ARM-powered Windows 8 machine in 2013. Qualcomm, Texas Instruments and NVIDIA, three ARM processor builders, are reportedly allowed to choose two notebook partners each, one major and one minor, DigiTimes explained. Qualcomm will work with Samsung and Sony, Texas Instruments plans to team with Toshiba and Samsung, and NVIDIA apparently said it will build ARM-based machines with Lenovo and Acer. The three major computer partners are Lenovo, Samsung and Toshiba. Pegatron, Winstron, Compal and Quanta have each initiated research and development in an effort to woo big ARM-based Windows 8 contracts from the aforementioned vendors.

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Last year more than 100 tablets were unveiled during the Consumer Electronics Show and this year it appears the focus could shift to Intel-powered ultrabooks. Demand for ultrabooks — devices defined as powerful thin and light notebooks with long-lasting battery life — is expected to begin to heat up following the holidays and January’s Consumer Electronics Show. More than 50 new ultrabook models will be displayed during CES and the category is expected to be one of the hottest consumer electronic segments on the show floor, Taiwan Economic News said Tuesday, citing insights from a show organizer. Intel, which invested $300 million in the utltrabook platform, also said that there will be more than 60 different ultrabook models available during 2012, and the chip maker’s upcoming Ivy Bridge processors will power many of them. Initial reports suggested that ultrabooks are off to a slow start, with just 50,000 units shipped so far from Acer, ASUS, Lenovo and Toshiba combined. Additionally, weak sales of the first models from Asus and Acer forced both firms to scale back production by as much as 40%, another report suggested.

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Lenovo may unveil a tablet powered by Google’s brand new Android 4.0 (Ice Cream Sandwich) operating system by the end of the year, Engadget has learned. Reportedly, the device will also utilize NVIDIA’s brand new quad-core Tegra 3 processor clocked at 1.6GHz, arguably the most powerful mobile processor currently available. The tablet will also reportedly be equipped with a 10.1-inch display, 2GB of 1,600MHz DDR3 RAM, a fingerprint scanner that may also be used as an optical controller, a rear-facing camera and a USB port. The device is said to tout a “Fusion-Skin Body” as well, though we’re not quite sure what that means. We wouldn’t be surprised to hear an official announcement in the coming weeks if Lenovo wants its new tablet on store shelves in time for the holidays.

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The devastating flooding in Thailand could hurt HP, Lenovo, Dell and Microsoft during the fourth quarter of this year, IDC said in a recent report. The research firm originally projected shipment growth of 5.1% for the PC industry during the quarter but it now expects PC shipments to fall between 2.2% and 3.4%. Moving into 2012, IDC said shipments could drop as much as 13.4%. “A lot of these plants are still under water, and it’s unclear how much damage they will find when the water recedes,” IDC analyst Loren Loverde explained in an interview with Bloomberg. “It’s also unclear how quickly the cleanup can begin and how much time it will take to bring in replacement parts to rebuild.” A recent report from Goldman Sachs also suggested that PC shipments could drop 8.5% during the first quarter of 2012. Hard drive manufacturers Western Digital and Seagate Technology both have plants that were flooded in Thailand. Seagate’s CEO Steve Luczo told Bloomberg that hard drive prices from his company could jump $10 to $25. “If you’re thinking of buying a laptop for Christmas, I’d buy it now,” Luczo suggested.

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Global shipments of PCs grew slightly but less than analysts had predicted during the third quarter of 2011, Gartner said recently, citing preliminary findings of a new research report. 91.8 million PCs were shipped during the quarter, a 3.2% jumped from the same quarter of last year. The figures are lower than Gartner’s original estimate, which suggested PC vendors would ship 5.1% more units during the quarter. Gartner said the lower sales can be attributed to a weak Western European PC market. Read on for more.

HP maintains the largest PC market share with a 17.7 grip on the industry, a 5.3% increase from the same period last year, and the company shipped 16.2 million units during the quarter. Lenovo had the largest increase in market share and jumped 25.2% to a 13.5% share. Dell (11.6%), Acer (10.6%), and ASUS (6.2%) followed in the market share rankings.

“The inventory buildup, which slowed growth the last four quarters, mostly cleared out during the third quarter of this year; however, the PC industry has been performing below normal seasonality,” Gartner principal analyst Mikako Kitagawa said. “As expected, back-to-school PC sales were disappointing in mature markets, confirming that the consumer PC market continues to be weak. The popularity of non-PC devices, including media tablets, such as the iPad and smartphones, took consumers’ spending away from PCs.”

In the U.S., HP was the top PC vendor in the third quarter with 28.9% of the market followed by Dell with 21.9%, Apple with 12.9%, Toshiba with 8.4% and Acer with 7.8% of the market. Gartner’s full press release follows below.

Gartner Says Worldwide PC Shipments Grew 3.2 Percent in Third Quarter of 2011

For the First Time, Lenovo Moved Into the No. 2 Position and Asus Became the No. 5 Vendor

STAMFORD, Conn., October 12, 2011—

Worldwide PC shipments totaled 91.8 million units in the third quarter of 2011, a 3.2 percent increase from the third quarter of 2010, according to preliminary results by Gartner, Inc. These results are slightly lower than Gartner’s earlier projection of 5.1 percent growth for the quarter. The EMEA region contributed to lower-than-expected growth led by a weak Western European market.

“The inventory buildup, which slowed growth the last four quarters, mostly cleared out during the third quarter of this year; however, the PC industry has been performing below normal seasonality,” said Mikako Kitagawa, principal analyst at Gartner. “As expected, back-to-school PC sales were disappointing in mature markets, confirming that the consumer PC market continues to be weak. The popularity of non-PC devices, including media tablets, such as the iPad and smartphones, took consumers’ spending away from PCs.

“As the PC market faced a slowdown, vendor consolidation has become a more apparent trend in the industry. Lenovo’s recent merger with NEC, and its acquisition of Medion, as well as HP’s announcement that it may spin off or sell its PC business, underlined this trend during the quarter.”

HP, the No. 1 vendor based on global PC shipments, grew faster than the industry average, and its market share reached 17.7 percent in the third quarter of 2011 (see Table 1). Despite announcing in the middle of 2Q11 the potential spinoff of its PC business, HP experienced strong growth in the U.S., while outside the U.S., growth was relatively weak or average.

Lenovo became the second-largest PC vendor in the worldwide market for the first time. The company’s expansion was boosted in part by the joint vendor with NEC in Japan. However, its aggressive marketing to both the professional and consumer PC markets accelerated its shipment volume.

Table1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 3Q11 (Units)

Company	3Q11 Shipments	3Q11 Market Share (%)	3Q10 Shipments	3Q10 Market Share (%)	3Q10-3Q11 Growth (%)
HP	16,231,528	17.7	15,419,654	17.3	5.3
Lenovo	12,352,194	13.5	9,867,917	11.1	25.2
Dell	10,676,360	11.6	10,829,115	12.2	-1.4
Acer Group	9,686,853	10.6	12,612,822	14.2	-23.2
Asus	5,693,146	6.2	4,802,481	5.4	18.5
Others	37,146,785	40.5	35,420,559	39.8	4.9
Total	91,786,865	100.0	88,952,547	100.0	3.2

Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks but not media tablets such as the iPad. Final estimates will be subject to change.
Lenovo shipments include NEC shipments, but not Medion’s shipments.
Source: Gartner (October 2011)

Dell’s performance was below the industry average in most regions, as the company faced intensified competition in the professional space, where Dell has been traditionally strong. Acer mostly cleared its inventory buildup in the EMEA region by the third quarter of 2011. However, channels have been adopting a conservative position in regard to placing orders following the inventory issues. Asus widened the gap with Toshiba, the sixth-largest vendor. Asus achieved strong growth in China.

In the U.S., PC shipments totaled 17.8 million units in the third quarter of 2011, a 1.1 percent increase from the third quarter of 2010. The U.S. PC market experienced year-over-year growth for the first time in three quarters. While the consumer market continued to be weak with disappointing back-to-school sales in the third quarter, the inventory was kept mostly in check as industry expectations were relatively low.

“The main contributor to the weak consumer PC market in the U.S. was intensified competition for consumers’ money,” Ms. Kitagawa said. “Media tablets and smartphones took center stage in the U.S. retail sector, and the expectation is for continuing demand for these devices throughout the holiday season.”

HP showed strong growth in the U.S. PC market, as shipments increased 15.1 percent in the third quarter, and its market share totaled 28.9 percent (see Table 2). Despite the potential spinoff of its PC business, HP executives’ efforts to give the appearance of “business as usual” seemed to work in the quarter.

Dell struggled as shipments declined 7.2 percent in the third quarter of 2011. “Dell’s issue has been balancing profitability and market share gain, a difficult task in a PC industry where high volumes and low margins are the norm,” Ms. Kitagawa said.

Gartner’s early study shows that Apple experienced the strongest growth among the top five vendors in the U.S. PC market. Apple’s PC shipments increased 21.5 percent in the third quarter of 2011. The robust growth of the MacBook Air continued to lead Apple’s overall growth in the U.S. market.

Table 2
Preliminary United States PC Vendor Unit Shipment Estimates for 3Q11 (Units)

Company	3Q11 Shipments	3Q11 Market Share (%)	3Q10 Shipments	3Q10 Market Share (%)	3Q11-3Q10 Growth (%)
HP	5,132,614	28.9	4,459,120	25.4	15.1
Dell	3,886,864	21.9	4,188,687	23.8	-7.2
Apple	2,300,000	12.9	1,893,600	10.8	21.5
Toshiba	1,486,100	8.4	1,545,630	8.8	-3.9
Acer Group	1,378,768	7.8	1,848,511	10.5	-25.4
Others	3,580,989	20.2	3,635,684	20.7	-1.5
Total	17,765,335	100.0	17,571,232	100.0	1.1

Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks but not media tablets such as the iPad. Final estimates will be subject to change.
Source: Gartner (October 2011)

PC growth in EMEA reached 26.6 million units in the third quarter of 2011, a 2.9 percent decline from the second quarter of 2010. It was the third consecutive quarter that the EMEA region has experienced negative growth. However, analysts said vendors may have seen the end of backed-up inventory issues, which have been pulling down growth. The consumer PC market in Western Europe remained weak, with consumer confidence permanently shaken by the economic issues spreading across most of the region. Furthermore, the market share of mini-notebooks continued to decline, especially in Western Europe, which also contributed to the weak year-over-year comparison.

In Asia/Pacific, PC shipments reached 31.8 million units in the third quarter of 2011, a 6 percent increase from the same period last year. Vendors continued to stimulate demand aggressively with promotions and prices, benefiting buyers looking for good prices. It also provided an opportunity for some consumers to buy their first mobile PC.

The PC market in Latin America grew 19.6 percent in the third quarter of 2011. Mobile PC shipments grew 31.1 percent year over year, and desk-based PC shipments increased 6.5 percent in the third quarter of 2011.

PC shipments in Japan grew 3 percent, with shipments reaching 3.9 million units. The consumer market received a boost in demand with the introduction by vendors of new consumer models in September. There was also a rebound in production for the professional market, after a drop in enterprise demand because of the higher prioritization for business continuity plans that coincided with the earthquake and tsunami in March.

These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe. Additional research can be found on the Computing Hardware section on Gartner’s website at http://www.gartner.com/it/products/research/asset_129157_2395.jsp.

Fearing the notebook market will not bounce back during the fourth quarter, Intel’s Ultrabook partners Acer, ASUS, Lenovo and Toshiba will initially ship fewer than 50,000 units of the new thin and light notebooks DigiTimes reported on Tuesday. Intel, which will invest $300 million in Ultrabooks during the next three to four years, will also hold a conference on September 14th in an effort to attract new partners to the platform. The new notebooks are manufactured by Quanta Computer and Compal Electronics, and are expected to ship in September for launches in October. Sources speaking to DigiTimes also suggested that the notebook market may not bounce back enough for Intel to achieve its goal of owning 40% of the notebook market with its Ultrabook devices.

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