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| Source: Gizmodo |
Hewlett-Packard, the world’s second-largest personal computer manufacturer, is determined not to engage in a price war with its long-time rival Dell to capture market share in Asia, the company’s regional director stated.
“Are you trading off market share for your revenue by continuously lowering prices? Our goal is to be number one in Asia, of course, but it must ensure that the business remains profitable,” said Tom Iannotti, HP’s regional director for Asia.
Both HP and Dell, the world’s leading personal computer manufacturer, have struggled against China’s Lenovo in the lucrative Asian market, primarily because Lenovo consistently offers lower-priced products.
Over time, as the North American and European markets became saturated, Asia has emerged as a strategic and increasingly important market for these companies in their pursuit of revenue and profit growth.
“Lenovo and Dell have hinted that the rules of the game in Asia must be based on price,” said Brent Bracelin, an analyst at Pacific Crest Securities.
“The question is whether HP can succeed while standing outside this rule?” given that it’s hard to claim that any company’s product quality is superior.
Previously, on May 19, Steve Felice, Dell’s President for the Asia-Pacific region, stated that they were “preparing to lower prices further in Asia to gain market share.” Lenovo itself has just introduced a new laptop at a very affordable price. Only HP has not made any moves.
Overall, there are grounds for skepticism about the feasibility of Iannotti’s commitment upon his appointment (on May 1), that “his first mission is to accelerate revenue growth for HP in Asia,” Bracelin shrugged.
Thien Yi
