Disties well placed to manage HP PC exit

HP's share of distributors' PC revenue has plunged from 44 to 34 per cent over the past three years

Distributors have dramatically reduced their exposure to HP over the past three years, ensuring they will be cushioned from the full force of the vendor's decision to quit the PC game.

According to analyst Context, HP accounted for 44 per cent of European distribution PC revenue at the beginning of 2008.

By the end of 2010, this figure had fallen to 34 per cent. Over the same period, the number of PC vendors that made up 80 per cent of distributors' PC revenue rose from five to seven, with Samsung, Apple and Lenovo among the winners.

Context co-founder Jeremy Davies (pictured) said distributors are well placed to manage the disappearance of revenue marked by HP's PC exit.

"[31 per cent] is, of course, still a significant share," said Davies, "but we are seeing strong performance from other PC vendors and expect them to easily pick up any business HP will be leaving behind."

However, Davies admitted the timing of HP's bombshell announcement would have come as a shock to many.

"Although many analysts had suggested the possibility that HP would eventually leave the PC business like IBM did, nobody expected a decision so soon after HP's investment in Palm and the launch of the TouchPad tablet PC," he said.

The Context figures also suggest that distribution is becoming an increasingly important route to market for PC vendors. For instance, the number of PCs shipped by vendors in Europe grew from 30 per cent to 34 per cent between the end of 2009 and the end of 2010.