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HP’s decision will shake up relationships in ANZ – IDC

HP’s decision will shake up relationships in ANZ – IDC

The analysts expect a lot of activity in the ANZ PC and media tablet markets

HP’s decision to evaluate the potential spin off or sale of its PC business has shaken up many industries in the ANZ ICT business but “will not fundamentally affect the performance of the overall PC and media tablet markets,” says IDC in a statement. HP is said to be currently exploring alternatives for its personal systems group (PSG), and has also announced the decision to discontinue its WebOS operations, including its smartphones and TouchPad tablet.

"Given the process is expected to take 12 to 18 months to complete, there will be a lot of enterprise customers and channel partners in Australia and New Zealand that will be commencing a serious re-evaluation of their relationship with HP today," says IDC senior analyst, Trevor Clarke. "Whilst supply of HP PCs and other PSG offerings, including associated services, will not be effected in the short term and it will be business as usual, we expect this announcement to shake up relationships in the market over the next six months. PSG may come out of this process a stronger brand, but it faces considerable risk in the short term."

According to data from IDC, PSG was the market leader in the ANZ in 2010 with 22 percent share in Australia and 34 percent share in the New Zealand PC market. PSG, says IDC, also has “one of the most extensive channel ecosystems across the consumer, SMB, public and commercial markets”.

The analysts expect “a lot of activity in the ANZ PC and media tablet markets as competing vendors look to tie up relationships with disgruntled HP channel partners, retailers and employees”.

"Consumers, businesses and the local arm of HP's PSG business unit will not get the chance to see whether the TouchPad and webOS would have gained traction in the market," adds Clarke. "The introduction of the TouchPad was a chance for HP to show innovation and capture new audiences with a different experience, but this is now a fast fading dream."

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