A drop in consumers' PC sales during June has seen Hewlett-Packard's market share plummet 13 per cent and knocked the vendor from the top spot to number three in sales.
The expected rush to cash in on lower hardware costs as a result of GST implementation never eventuated, with rising software costs canceling out any consumer savings, according to latest figures from market analysts Inform.
PC shipments fell by 24 per cent compared to June, with IBM the only larger vendor to record positive growth. It leapfrogged HP and Compaq to grab the number one spot with 21 per cent of the market.
HP's strength in the mass merchant channel worked against the vendor as the market fell by 38 per cent compared to June. In contrast, independent retailers and direct markets increased by 20 and 4 per cent respectively.
Compaq remained in the number two position. Although its sales dropped by seven per cent, its market share increased from 17 to 20 per cent.
"The July results serve to highlight the cutthroat nature of this supersonic industry," the Inform report said.
The whitebox market remained the real winner, increasing its market share from 20 per cent in June to 24 per cent in July.
"This could be an indication that consumers, disappointed with the absence of price cuts in mass merchant outlets, turned to smaller outlets in order to source cheaper PCs," Inform reported.