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Watched Japanese airline, ANA, apologises for plane flip Fri, Sep 30 2011 Rihanna's "inappropriate" outfit halts music video Tue, Sep 27 2011 China : what is a "hard landing"? Sun, Oct 9 2011 HP expands PC lead, Lenovo No. 2 for 1st time Tweet Share this Email Print Related News UPDATE 4-ASML sees slowdown in chip sector Wed, Oct 12 2011 Samsung says third-quarter to top consensus as phones boom Fri, Oct 7 2011 Apple's lead over rivals could narrow without Jobs Thu, Oct 6 2011 Apple stumble seen opening door for rivals Wed, Oct 5 2011 Samsung targets iPhone 4S sales ban in France, Italy Wed, Oct 5 2011 Analysis & Opinion 11 business lessons Steve Jobs taught me Tech wrap: Samsung closing in on Apple? Related Topics Technology » Media » iPad » A view of the Hewlett Packard headquarters in Palo Alto, California November 23, 2009. Credit: Reuters/Robert Galbraith Wed Oct 12, 2011 5:48pm EDT (Reuters) - Hewlett-Packard Co's personal computer shipments grew 5.3 percent in the third quarter, while China's Lenovo overtook Dell to become the world's No. 2 PC maker for the first time, according to data from two influential research firms. HP -- which is scrambling to decide whether to sell, keep or spin off its PC division by the end of October -- now commands a 17.7 percent share of an ailing global market, up marginally from 17.3 percent a year ago, tech research house Gartner said. Rival firm IDC put HP's market share at 18.1 percent. IDC also ranked HP, Lenopvo and Dell Nos. 1, 2 and 3. Wall Street analysts had speculated a premature announcement about the potential spinoff of HP's largest division would drive customers away. Lenovo, aided by a laptop-sales tie-up with Japan's NEC and aggressive marketing, expanded its market share to 13.5 percent from 11.1 percent, eclipsing Dell's 11.6 percent. PC sales are sputtering as consumers turn increasingly to mobile devices from smartphones to tablets like Apple Inc's iPad, while faltering economies pressure corporate spending on technology hardware. But IDC foresaw a bounceback in 2012 as HP and other PC makers begin to crank out smaller "ultra-mobile" computers. "For the moment, PCs have taken a backseat to a range of other devices competing for shrinking consumer and business budgets," said Jay Chou, senior research analyst with IDC. "While growth is expected to stay in mid-single digits in the fourth quarter, we should see faster growth in 2012 and beyond." U.S. PC shipments edged up just 1.1 percent to 17.8 million units in the third quarter, according to Gartner. While anemic, that marked the first time shipments had grown in three straight quarters. HP notably expanded its shipments by 15.1 percent in its home market, the firm said. "Despite the potential spinoff of its PC business, HP executives' efforts to give the appearance of 'business as usual' seemed to work," Gartner wrote in its statement. Emerging markets -- such as Lenovo's backyard, China -- remain however a rare bright spot in an otherwise gloomy outlook. "The PC industry has been performing below normal seasonality," said Mikako Kitagawa, principal analyst at Gartner. "As expected, back-to-school PC sales were disappointing in mature markets, confirming that the consumer PC market continues to be weak. The popularity of non-PC devices, including media tablets, such as the iPad and smartphones, took consumers' spending away from PCs. "As the PC market faced a slowdown, vendor consolidation has become a more apparent trend in the industry. Lenovo's recent merger with NEC, and its acquisition of Medion, as well as HP's announcement that it may spin off or sell its PC business, underlined this trend during the quarter." (Reporting by Edwin Chan; Editing by Gary Hill) Technology Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) 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