SMBs fuel HP's PC business in Asia

Small and midsize business market, coupled with a design strategy just for Asia, helped Hewlett-Packard grow its PC business in Asia.
Written by Lynn Tan @ Redhat, Contributor on

The small and midsize business (SMB) market was the fastest-growing segment for Hewlett-Packard's PC business in Asia for 2007, according to a senior company executive.

In a phone interview with ZDNet Asia Monday, Adrian Koch, senior vice president of the personal systems group (PSG) for HP Asia-Pacific and Japan (APJ), said that while the PC maker is "active" in the consumer, SMB and enterprise markets, the SMB segment was the fastest growing in Asia for its fiscal year 2007.

"The core strategy for the SMB segment is always to deliver more than the products...[and] to focus on solutions and value propositions for the various SMB customers," he said.

The IT giant reported net revenue of US$28.3 billion for its fourth quarter ended Oct. 31, registering 15 percent year-on-year growth. The PC business took the spotlight again, growing 30 percent from the previous quarter to US$10.1 billion.

Revenues from HP's Asia-Pacific business, including Japan, grew 20 percent to US$4.8 billion, contributing 17 percent of its total worldwide revenue for the quarter. This is also the first fiscal year where the APJ business achieved more than US$4 billion in revenue every quarter.

Designed for Asia
One of the factors contributing to the growth of HP's regional PC business is its design strategy attuned to the lifestyle of its customers, Koch said, highlighting that the designs are specific to the Asian market only.

"For example, 50 percent of the desktops selling in China are products that are uniquely designed and sold in China," he noted. "That strategy has worked."

On what HP will do to maintain its leadership for 2008, Koch said the company is aiming for a "complete product portfolio" and to achieve faster time to market.

The IT giant also plans to expand further into geographies such as China and India. Koch said HP's China presence will expand from the current 420 cities to 600 cities in the next few quarters.

Editorial standards