Hewlett-Packard: quick profit, or will lose their competitive advantage in the Chinese market

A few months ago, Hewlett-Packard's third-quarter results, HP Personal Systems Group third-quarter revenue of 8.4 billion U.S. dollars, down 18% year on year, in which revenue fell 10 percent laptop, desktop revenue fell 26%. Although HP is still occupying the top spot in the global computer industry, location, but the face of the corporate sector adjustment stimulate competition among peers, as well as worldwide, repeatedly broke the product quality problems, particularly China, the quality of the notebook market, frequent problems, Hewlett-Packard to maintain its current position, not always been easy.

Global personal computer market's crowded

With the global economic recovery, the computer market began to pick up. Recently, the market research report published by IDC, global PC shipments top five computer manufacturers, in addition to Dell last quarter, a decline, other four showed a COMPAQ PRESARIO 2100 Battery to increase.

Last week, Lenovo's new one-quarter earnings freshly baked. Financial report not only shows that Lenovo began to turn around, and the global personal computer shipments increased by 17% year on year, which made Liu was "very satisfied." Lenovo's strong rebound in business, mainly due to China and other emerging markets for the contribution of group sales, particularly in its stronghold of Lenovo's sales in China rose 28 percent, sales increased 9%, with the words Lenovo CEO Yang Yuanqing "China once again played a 'mainstay' role."

Also last week, some media reported that worldwide PC market share rose to second place just Acer chairman JT Wang said Acer's notebook shipments this year will be more than 30 million, and next year will exceed 4000 10000. This figure, so that Acer is expected to go beyond HP, and become the world's largest notebook maker.

Hewlett-Packard in this fierce battle, the same active adjustment strategies. Hewlett-Packard Asia Pacific and Japan, regional president, said Xue Jinde, HP will strengthen the Chinese market, sales channels. The end of this year, China's sales network covers cities from the current 700 to 2000.

Price war ignore the quality of service

As the market pick up, competition is increasingly fierce, some recent brand computers also frequently be exposed quality issues. October 27 to October 30, Acer, Sony, Asus were submitted to the State General Administration of Quality Supervision, Inspection notebook computers and related equipment on the recall report. Among them, Acer decided to recall the number of Chinese territory involving a total of 12266 units, three kinds of models of notebook computers; Sony decided to replace free of charge in mainland China a total of 1715 units of power adapter; ASUS decided to recall laptop batteries around 3630.

Some analysts have pointed out that, due to the highly competitive notebook market, manufacturers of products for the price of "dropping lower and lower," product cost compression, causing the security problem is one of the reasons. Some manufacturers have admitted in recent years, the highly competitive notebook market, the profit margins of notebooks have become less dominant in the market in order to not only the product to keep pace, the price should have an advantage, to cheap, the cost have a certain control.

In fact, HP's product quality issues, has long been China's major media exposure. Started the previous two years, until last year's outbreak of "snow-screen" event, and this year appeared one after another "splash screen" event, HP notebooks have become the main characters, but at the AQSIQ Web site, and did not see the relevant recall information. Can be said that the blind pursuit of product shipments and market share, lower prices, lower costs, ignoring the product quality and after-sales service will only lead to widespread dissatisfaction with Chinese consumers. In the People's Network IT channel related investigations, more than 95% of Internet users expressed the impression that HP was "extremely disappointing", while more than 99% of Internet users expressed a desire for Hewlett-Packard, "the issue in this recall."

Qiao advantage of this legal gap or infuriating consumers

In the "AQSIQ Defective Product Management Center" web site, the most recent time in HP's recall of defective products, information is in the last year's June 2. That HP worldwide recall of about 203,000 notebooks buggy batteries, the number involved in China is about 15000. However, this time it is precisely the large-scale outbreak of "snow screen", when, why HP only within the framework of the global recall of laptop batteries, while ignoring the local Chinese region's "snow screen" problem?

According to "China Quality News" report, HP's recall of batteries is in line with the U.S. Consumer Product Safety Commission's requirements to implement. However, there are still no information on defective electronic product recall laws and regulations. Perhaps, this is giving some companies the opportunity to avoid legal risks, giving the company save a lot of expenses.

But this clever approach has angered consumers. In the Baidu search engine, enter "HP snow-screen" and "HP splash screen" keyword, the search results more than 40000 and 90000, respectively. Almost all the video sites, can find User upload their own shooting problems on the HP notebook video. Some of the video, HP notebook computers which displayed a variety of unusual phenomena, and still others are angry at the matter and notebooks to consumers shattered. Some TV stations also carried a report on this incident, interviews, many consumers Hewlett-Packard Co. and their agents are very disappointed with the attitude of indifference.

Quick profit or to lose the Chinese market Hewlett-Packard

Perhaps the market is eager to compete for the computer maker's mentality. However, the ants of the hole, ACER ASPIRE 3000 Battery bursts thousands of miles. The brands are the sum of all intangible assets holographic concentrated, consumers will buy the brand as the computer, it is because of the brand's trust. But if these brands can not control the quality of the computer business, will ultimately be abandoned by consumers, the brand no longer is the enterprise's cash cow, but simply a sign of just worthless.

Hewlett-Packard and Lenovo, Acer, the two local computer makers in a competitive Chinese market, which already lacked natural advantages, if the product quality and service attitude ignores consumers, relying on "Little Smart" means to obtain results on the glory, it is Hewlett-Packard is difficult to imagine how the Chinese market, and even a foothold.