HP Inc. (HPQ - Free Report) claims of “reinventing the PC market” by introducing a convertible laptop, Spectre Folio, with an exterior made of leather, at an event in New York.
The touchscreen laptop that folds into a tablet features Intel’s (INTC - Free Report) 8th generation Core i5 or i7 processor, 8GB of RAM and 256GB of SSD storage. The device has a 13.3-inch Full HD display with Corning (GLW - Free Report) Gorilla Glass 4. A 4K display option is expected to be added later this year.
The device also features other enhancements such as a battery life of up to 18 hours and optional 4G LTE connectivity. The leather exterior is clearly the key differentiator of this product. Per the company, the leather plays an “important role in the functionality of the device.”
Starting at $1,299, the new device will be available in two different colors. The cognac brown model will go on sale on Oct 29, while the bordeaux burgundy version is expected in late December.
HP to Cash in on the Growing Convertible PC Market
Over the last few years, 2-in-1 devices, which can function both as laptops and tablets have become a growing segment of the PC market. Sale of such convertible devices is a breather for the personal computing devices market, which has witnessed decline in shipment of traditional devices.
Per International Data Corporation (IDC) estimates, unit shipments for the global personal computing devices market, which comprises traditional PCs, tablets, and workstations, will decline 3.9% in 2018. The research firm anticipates the decline to continue throughout the forecast period as shipment volume shrinks to 383.6 million at a five-year CAGR of -1.5% in 2022.
However, despite the overall decline in shipments, growth in 2-in-1s (such as detachable tablets and convertible notebooks), ultraslim notebooks and even gaming desktop, is expected to help the market grow 3.6% in dollar terms to $237.3 billion in 2018, adds the firm. Notably, the firm predicts shipments of 2-in-1s to grow more than 9% this year.
We note that product innovation has helped HP maintain its leading position in PC market. The addition of Spectre Folio will attract more users that will eventually back HP’s top-line growth going forward.
Moreover, focusing on such devices will help HP gain an edge over other products such as Microsoft (MSFT - Free Report) Surface Pro. However, intensifying competition from lower-priced products developed by Samsung, Huawei and Lenovo will continue to affect its market share.
HP currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>