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Bitter PC Battle Taking It’s Toll In OZ

Bitter PC Battle Taking It

The battle to the bottom was kicked off by Lenovo back in November when they launched into the Australian consumer market.

Working with only two retail groups Harvey Norman and JB Hi Fi the Chinese brand has since expanded into Officeworks in an effort to tap into the B2B market.

The Chinese Company said that they have no plans to expand his retail network further in Australia.

Hewlett Packard the #1 PC Company in Australia who were desperate to hold onto marketshare up against Lenovo the #1 global PC brand started discounting out several PC categories back in November in an attempt to muddy the water for Lenovo.

The strategy backfired with the latest GFK data revealing that not only has Lenovo gained 10% of the PC market including a large slice of the over $2K notebook market, their discounting has seen the HP branded products fall below Acer in the mid and budget value market. 

Propping up vendors is strong sales from other parts of their business. 

In the Education and enterprise markets it is Lenovo, Hewlett Packard and Toshiba who are under pressure from Acer who is picking up multimillion dollar contracts previously held by their competitors. 

Acer has recently won a 2,500 notebook contract with the Federal Government’s Bureau of Statistics, they have also won a potential 14,000 notebook unit contract to supply Victorian teachers, the big losers at the Bureau of Stats were Microsoft with their Surface Pro 3, Toshiba and Dell. 

The Victorian Government has also confirmed that Acer has been confirmed as a major supplier following the closing of the Victorian Curriculum Contract. 

According to the Victorian Education department this contract is worth over $500M dollars. 

It’s also emerged that HP seems to be shying away from Microsoft and hanging out with Google instead in an effort to sell more Chromebooks. 

Both Toshiba and Hewlett Packard are struggling to take Chromebook share away from Acer who is the #1 Chromebook supplier in both Australia and New Zealand. 

Hewlett-Packard’s (HP) CEO said that former partners like Microsoft and Intel have now become its competition, and HP has been buddying up with companies like Google instead.

HP CEO Meg Whitman used to tout the importance of HP’s partnership with Microsoft But her tune has changed of late ever since Microsoft starting making its own hardware (the Surface tablet).

HP who is shying away from the Windows maker did tell two mass retailers in Australia recently that they will have new Windows 10 products on shelves in Australia by the first week in Australia with insiders tipping that the Company will airfreight units  in an effort to be first with the new OS. 

And Microsoft isn’t the only one — Whitman said Intel is now a partner-gone-competition as well with its cloud computing and computer security solutions for the enterprise.

Darren Simmons the CEO of Acer said “While our enterprise and SMB business is growing it is the discounting war in the consumer market that is hurting everyone, no one is making money and the battle between HP and Lenovo is hurting everyone, it is not sustainable in the long term”.