HEWLETT PACKARD
Opportunities
1. The worldwide personal computer industry posted its fourth consecutive year of double digit expansion in 2006, recording 10 percent unit growth. 2. PC shipments in the Asia-Pacific region expanded by an estimated 17.6 percent in 2006 on a unit basis. 3. IDC’s “rest of the world” category, which includes Eastern Europe, Latin America, and the Middle East rose 22 percent on a preliminary basis. 4. It is estimated that the PC industry will post total unit growth of approximately 11 percent for 2007. 5. Dell’s units sold declined 8.4 percent, so Dell’s market share fell by nearly 300 basis points on a year-over-year basis. 6. Over the past three years, Gateway’s gross margins narrowed from 14.4 percent in the first quarter of 2004 to 5.2 percent in the fourth quarter of 2006 7. During the fourth quarter of 2006, server market revenue grew by 5.2 percent. 8. Dell achieved server market share of 9.4 percent on server revenue growth of 2.4 percent, down from 9.6 percent 9. Worldwide revenues for servers were up 2.0 percent to $52.3 billion. 10. In the first quarter of 2006, IBM’s server revenue growth of 3.8 percent put its market share at 37.9 percent, down from 38.4 percent the comparable year-earlier quarter.
Threats
1. IBM maintained its position as the leader in overall server market revenues in 2006. 2. PC unit shipments in the U.S. declined 0.5 percent in the fourth quarter of 2006. 3. During the fourth quarter of 2006, Apple grew its units by 31.8 percent in the U.S. market. 4. Sun’s server market share was 9.7 percent in the fourth quarter of 2006, up from 8.2 percent a year earlier. 5. Apple’s switch in 2006 to Intel-based chips increased the processing power of Macs. 6. IBM’s server factory revenues increased 0.8 percent. 7. Sun Microsystems’s