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-- for the personal computer industry research firm Gartner says global PC shipments in the second quarter fell ten point 9% but for those who are still buying PCs.
There's a new leader in the race for market share China's Lenovo overtaking Hewlett-Packard.
As the number one PC supplier for the first time ever.
So yeah we thought.
Now we need to -- and this gentleman he is Villanova and North American president Jay good to have you on the show thank you so much upcoming.
Hi thanks for -- I'm excited about it well there's there's the good news bad news part of but the bad news is the Gartner numbers that we just showed but the good notices.
They are still people out there in the world and you are very much a global company.
Who -- are attached to the PC concept so PCs aren't just completely disappearing but.
Let's get to the good is part of it how what is it that you think you did -- that catapulted you above Hewlett-Packard to take the top spot when it comes to market -- for PCs.
Yeah it's it's been a long journey and it'll continue to be a fight we had a very basic strategy that said we protect our strong market so which -- China.
As well as other commercial business and -- attack the consumer business and emerging markets.
So that combined with the a lot of investment are indeed a new technology and expanded distribution.
Have let us to go where we are today in PCs.
So let me ask you do you have a little less than 20%.
Market share in the PC rolled.
And what we're being told -- PCs -- yesterday's news but I believe you would say no they're not.
Why should -- companies like -- continue to invest so heavily with these states.
Well you know at the end of the day it's still -- 200 billion dollar business around the world and like you said we're swear under 20% of -- so we really see a big opportunity for profitable growth going forward in this segment.
We also think that very we've seen the worst in terms of the market on PCs and we expect it to get better later this year and then the next year to see some growth.
So much so.
You're such believers that you are moving a lot of -- in your manufacturing.
From that thinkpad which of course you bought that business from IBM.
To North Carolina doing the complete opposite of what say -- Other companies in the past like apple -- done which is just -- but up to Foxconn in China.
Would tell me how that's gonna work for margins and why you made that strategic decision.
Well you know we're we're excited to be a pioneer in doing.
We're one of the first if not the first technology manufacturers to bring.
Some of the manufacturing back to to the US.
We really did that based on a customer business case we think there's a couple of advantages to doing that number one we can get products to customers faster just pure logistics time -- when we make them here in North Carolina.
We can customize and later in the purchase cycle you know close to the box services for peripherals and and batters.
And then there's a segment of the market the -- that either demands or requires.
That that products be assembled in the US especially in the government so that business case made sense for us to two to start an investment here.
When he comes to PCs over where is the market is it replacement PCs are you seeing at least some growth you know new purchases where -- are the sales being made.
Well it's a little bit of both you certainly are seen replacement cycles.
The advent of that while it hasn't been a boon for the market that we had hoped for it certainly has given customers a new reason to buy.
A new user experience that it's that significantly different than what we've seen in PC before.
And and and we're starting to see some of the fruits of that here in the middle of the year and we expect that to continue like -- We're talking all PC but you guys do a pretty interest in business when it comes to tablets and I know Smartphones have been a priority but how do you ramp up your Smartphone.
Attractiveness to say -- the 21 year old college student here in America.
Yeah so that's you know is as much is we're committed to the PC business and believe that there's profitable growth there.
We also understand some of the realities of the market and that is a lot of consumer spending is going to these new type devices like tablets and Smartphones.
So so we have a successful business there a lot of people here in this market don't know that we've launched.
Smartphones in China as well as other countries that make up about 60% of the world's population.
Matter fact we're number two.
In China in Smartphones already.
And so eventually.
We will bring that to the US but right now we want to continue to build our brand here amongst the American consumer.
And build our PC strength because the fact remains we're not number one in the US and PCs and we think we have growth opportunities still enough space.
Carl Icahn now saying he's went up his bid for -- competitor at which you worked for many years.
-- look like to you on the outside as this battle to take -- private continues do you look at them as a threat if they go private more so than what they are today.
Well I tell you -- we we're keeping our head down and and -- -- spending time on our products and our customers.
If if that gives customers a reason for pause then the more happy go try to -- a -- Good to see object great to have you on thank you so much.
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