Home > Technology > Why Samsung & Sony want to Exit PC Business ?

Why Samsung & Sony want to Exit PC Business ?

February 28th, 2014

Sony Samsung PC BusinessSamsung’s and Sony’s recent updates suggest strategy changes in their PC businesses. Sony announced on 6 Feb 2013 plans to sell its PC division to a private-equity firm, Japan Industrial Partners (deal is pending). Samsung’s November 2013 Analyst Day focused on tablet and smartphones, leading to expectations of them exiting PCs. Samsung is expected to pull back from certain PC segments (i.e., desktop) and focus on higher-end notebooks.

We analysed Samsung’s and Sony’s PC businesses on a variety of screens including: (1) product segments, (2)
end-market, (3) region, and (4) price-band and compared these to existing PC vendors’ market share. We use market share as a proxy to determine PC vendor ability to gain share from the remaining PC segments of strength for Samsung and Sony. Overall, Acer and HP had the most overlap with Samsung and Sony’s PC businesses exiting 2013 and could grow market share the most at the latters’ expense, in our view.

No other PC vendor has a greater concentration of consumer notebook as Samsung and Sony. Samsung and Sony have the highest concentration of consumer notebooks among the top ten global PC vendors. Asus and Toshiba are closest in the 60-65% range. Asus has the largest consumer mix among Asian PC brands at 65%, followed by Acer with 51% and Lenovo at 47%. Nevertheless, Lenovo has the second largest consumer notebook market share globally at over 14%. Only HP has a higher market share at over 16%.

Over 77% of Samsung’s consumer notebook prices range US$300-999 where HP and Acer are strong; while >82% of Sony’s consumer notebook prices are in the range of US$500-1,199 where Lenovo and Asus are stronger. Samsung’s consumer notebooks concentrated at US$300-799 price bands; Sony’s consumer notebook prices are slightly higher in US$500-$999 price bands.

Overall, we expect consumer sentiment regarding either PC brands to lead to share shift, much like in 2011 when HP announced plans to hive of its PC business.

Categories: Technology Tags:
Comments are closed.