The PC market is poised to heat up in 2020 with the introduction of next-generation computers and peripherals at Consumer Electronics Show.
Most of the major players introduced a range of innovative new laptops, hybrids and other portables to strengthen their position in the highly competitive PC market, which is currently dominated by Lenovo (LNVGY - Free Report) , HP (HPQ - Free Report) and Dell Technologies (DELL - Free Report) .
Per Gartner’s third-quarter 2019 data, these three tech giants command 63.7% of total market share trailed by Apple (AAPL - Free Report) with 7.5% share. However, on a year-over-year basis, while Apple’s market share declined, Lenovo, HP and Dell witnessed growth.
Let’s take a look at what the major players unveiled at CES 2020.
Lenovo finally unveiled its foldable laptop, of which it has been offering glimpses since at least 2017. The ThinkPad X1 Fold will have multiple modes, including the ability to completely open up to a 13.3-inch laptop.
The folding mechanism, which has been tricky for some other companies to deploy, makes it easier to transport. Unlike Samsung Galaxy Fold and Lenovo’s own forthcoming Motorola Razr smartphone, there was no crease in the display when it was fully unfolded at CES.
However, the computer may still need some tweaks to work properly with Microsoft’s Windows operating system. It also runs on a new Intel (INTC - Free Report) chip that’s slower than those found in computers at a comparable price point.
The ThinkPad X1 Fold is priced at $2,499 and is expected to be available from the second half of 2020. The company will also offer a 5G version of the computer for an extra charge, making it one of the first computers to run on the next-gen high-speed wireless standard.
The device is likely to aid Lenovo in getting first-mover advantage in the foldable computer category, which is getting a push from tech companies to become a mainstream hit.
At CES 2020, HP introduced its Envy 32 All-in-One desktop. The system has an Intel 9th Generation Core i7 processor, NVIDIA’s (NVDA - Free Report) GeForce RTX 2080 GPU, a sophisticated audio sub-system, and a 31.5-inch 4K Ultra-HD monitor.
Although All-in-One desktops are popular among casual users, high-performance AIOs like Envy 32 are yet to take off. Thus, the device is expected to give HP a solid foothold in the segment.
The HP Envy 32 All-in-One is now available directly from the HP website as well as from leading retailers like Amazon or Best Buy, starting at $1599.99.
It also introduced HP Elite Dragonfly G2, which is being touted as the first business computer with 5G connectivity support and a built-in tile tracker that sends alerts to users when the laptop is misplaced or left behind.
The integration of 5G support will likely be a boon for HP, with the global adoption of 5G poised to take off by 2021.
HP is yet to reveal the pricing and availability details of the new Elite Dragonfly G2 laptop.
Dell introduced Latitude 9510, which will have 5G ready design, powerful audio features and a battery life target of up to 30 hours. The product will be available globally from Mar 26, starting at $1,799.
Latitude 9510 is expected to lead the commercial PC industry with the first built-in and automated AI-based optimization technology called Dell Optimizer. The new software helps reduce lags and delays with the use of AI and machine learning.
The company also introduced XPS 13 with the first ever, virtually borderless InfinityEdge display. The device will offer 10th Gen Intel Core Processors and a longer battery life.
Moreover, Dell introduced a range of monitors, namely the Dell 86 4K Interactive Touch Monitor, the UltraSharp 43 4K USB-C Monitor, the UltraSharp 27 4K USB-C Monitor and Alienware 25 Gaming Monitor, which features AMD Radeon FreeSync technology and is NVIDIA G-SYNC compatible.
IDC expects PC shipment to fall in 2020 due to low commercial demand, which was strong in 2019 due to transition to Windows 10.
However, CES demonstrated a number of innovative devices that bode well for the industry. Moreover, the emergence of 5G, AI, machine learning and foldable computers are likely to be the key catalysts in expanding the scope of the PC market.
While Apple, HP and NVIDIA carry a Zacks Rank #2 (Buy), Dell and Intel currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lenovo currently carries a Zacks Rank #5 (Strong Sell).
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