HP (HPQ - Free Report) recently enhanced its Spectre x360 convertible laptop portfolio with the addition of a 13 inch model, which is 13% smaller than its predecessor.
Clubbing sophisticated design, mobility, security and performance capabilities into one, the company expects this new product to cater to the growing customer needs.
The base model of the Spectre x360 13 starting at a price of $1,099, features a full HD LED screen, Intel’s (INTC - Free Report) Core i5 processor, 8GB RAM and a 256GB SATA SSD.
HP is also bringing a high-end model priced at $1,499, featuring 4K OLED display, Intel Core i7 processor, 16GB of RAM and 512GB SSD.
Reportedly, the new Spectre weighing 2.8 pounds is lighter than Apple’s (AAPL - Free Report) 2018 MacBook Air and 2019 MacBook Pro.
HP’s Focus on Personal Systems: A Tailwind
HP is benefiting from a strong uptrend in Personal Systems business. Investments in new products, services and solutions are yielding results for the company. Rising demand for its notebooks, desktops and workstations on the back of product innovation and differentiations is an upside.
In the worldwide PC market, HP secured the second spot in the second quarter of 2019 with 23.7% market share per IDC and 22.2% per Gartner. The company witnessed an upturn in shipment after suffering a decline in the previous two quarters.
Notably, in the last reported quarter, personal systems revenues rose 6% in constant currency and the operating profit surged 51%.
To up the game in the consumer business, the company recently introduced ENVY Series to the market featuring striking materials. Moreover, the company’s OMEN ecosystem continues to thrive in the gaming market.
At gamescom 2019, the company launched Pavilion Gaming desktop and laptop, accessories as well as updated its OMEN Command Center software and services. The company also unveiled a 27-inch Quad HD HDR gaming monitor, Omen X 27, for e-sports players and gamers.
In the commercial side of the business, the company is meeting the needs of an increasingly mobile workforce. The latest launch of its EliteBook x360 line-up is a positive in this regard. Further, the roll out of HP Sure Sense across EliteBook and ZBook, leveraging AI, to enable real-time malware protection is encouraging.
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 sluggishness in traditional devices.
Per International Data Corporation (IDC) forecasts, unit shipments of personal computing devices, which comprise traditional PCs and tablets, will decline at a CAGR of -2.4% over the 2019-2023 period.
However, 2-in-1s (such as detachable tablets and convertible notebooks) along with ultraslim notebooks together are expected to rise 5% during the same time frame, adds the firm. While the shipments of only 2-in-1s are anticipated to climb more than 3.8% in the period.
We note that the product innovation has helped HP maintain its leading position in the PC market. Focusing on improving its product portfolio will help the company fend off the fierce competition from the likes of Lenovo Group Ltd. (LNVGY - Free Report) , Dell and Apple. Notably, per IDC as well as Gartner, Lenovo retained the top spot in the June quarter.
The expansion of its product portfolio will attract more traffic that will eventually back HP’s top-line growth going forward.
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