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IDC: Compaq loss makes HP spike

IDC: Compaq loss makes HP spike

As the fallout in the PC retail channel upheaval continues, IDC has reported an unexpected leap in Hewlett-Packard's inkjet printer sales. And IDC Australia printer market analyst Les Champkin credits the jump in HP inkjets largely to the DeskJet 710s bundled with the Pavilion PCs.

The IDC report refers to the HP product taking up space formerly occupied by Compaq at mass retailer Harvey Norman, and Champkin also noted that the take-up of the HP bundle at Myer/Grace Bros has contributed to its spike.

According to Champkin: "Leadership of the inkjet market had been tight, but Harvey Norman's change of heart has brought an instant and dramatic change.

Nowhere to go

"Canon and Lexmark printers, which had been bundled with the Compaq machines at Harvey Norman, suddenly had nowhere to go.

"HP, which already sold about 3000 printers each month in bundles with Apple iMacs, received a sudden boost in 710 sales which took its leading share of the inkjet market revenue from 29 to 34 per cent."

While the sales figures to which he was referring were for July - before Harvey Norman announced the end of its Compaq relationship - Champkin said that the trend towards HP sales was already showing through. He said that Lexmark is now searching for new partners to take the place of Compaq, as is Canon.

"Both are looking to hitch their wagon to other vendors, while Epson, which had been bundling its products with Gateway and Apple, was not really affected but is observing the situation with interest," the IDC analyst said.


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