Local PC makers on HP wave

By RICHARD WOOD

Hewlett-Packard is claiming a huge leap in its personal computer sales into small business, at the expense of local assemblers.

But local assemblers dispute the claims, saying HP's aggressive marketing has helped their sales.

Craig Stokes, commercial PC product marketing manager for HP, said the company sold 47 per cent more PCs into the commercial desktop segment of the PC market for the second quarter this year compared with the same quarter last year - with most growth coming from small-business sales.

The figure compares the merged HP and Compaq to the two companies added together last year, a total of 35 per cent of the market at the time.

Stokes speculated that the growth was at the expense of local assemblers, or "white box" manufacturers.

"It took us a while to learn how to tackle the white box vendor and we've really started to make a difference in that space."

But the chief executive of The PC Company, Rob Sweet, said the Hamilton-based PC builder, which has 9 or 10 per cent of the PC market, had just had its best quarter ever.

Sweet said HP launched a huge advertising campaign and The PC Company responded by increasing its own advertising.

"They've targeted white box manufacturers. We've stood up to it very well."

Darren Smith, sales and marketing manager for Auckland PC builder Arche Technologies, also said it had been a great second quarter.

Smith said other local assemblers were saying the same."Everyone saw the advertising, then turned around and did something about it."

Smith said HP had stimulated the market, which could lead to a drying up in total market sales later in the year.

Researcher IDC's second-quarter figures, due out this month, will be the first market figures showing the combined HP and Compaq sales since the merger of the two heavyweights.

From next month, HP and Compaq PCs will be rebranded in the business market, with Compaq becoming a product brand sitting below the HP brand.

In the consumer area, the Compaq Presario and HP Pavilion brands will remain separate.