HP Captures Largest Market Share of PCs and x86 Servers in Electronic Sales Channels

HP ranked No. 1 in business-to-business integration, the fastest growing segment of e-commerce
PALO ALTO, Calif., Nov. 17, 2003

HP (NYSE:HPQ) leads in sales of PCs and x86 servers through electronic channels, according to new data from IDC.(1) A report issued by the Framingham, Mass.-based research firm found that HP controlled 26 percent of overall market share in electronic channels and 45 percent of the fast-growing business-to-business integration (B2Bi) segment.

IDC's research examined current sales numbers and future growth in North America and Western Europe. The report pointed to HP's leadership in the B2Bi channel, which the research firm found was the fastest growing e-commerce segment, with a forecasted compound annual growth rate of 48 percent between 2002 and 2006.

B2Bi provides companies with the maximum in efficiency and cost management by integrating supplier content directly into their internal e-procurement systems. This allows their employees to purchase from standard suppliers and catalogs from their desktop according to established business processes.

IDC said B2Bi is growing rapidly because most large global companies are extending their established electronic data interchange (EDI) networks with Internet-based technology rather than replacing current procurement infrastructure.

"HP has the largest share of B2Bi because HP expanded its B2Bi capabilities faster than its competitors," said Rob Rosenthal, senior research analyst, hardware research, IDC. "HP has a long history of offering value-added content and services for EDI, and has started to leverage that expertise to provide inexpensive, Web-based connections for a wide range of its customers worldwide. The company is positioned to benefit from the continued transition to B2Bi."

"HP recognized the importance of B2B integration to our customers early on and made significant investments in creating flexible, global B2Bi solutions that make it more efficient and cost-effective for our customers to do business with HP," said Marius Haas, vice president of worldwide e-Business, HP. "Our customer-centric strategy, based on industry-standard technologies and strategic relationships, provides our customers with access to a tailored solution with capabilities ranging from information to purchasing through tight integration, designed to meet specific customer business requirements worldwide."

The IDC study credited HP's overall electronic sales channel market share lead to its dominance of the EDI channel, the largest electronic sales platform. The report also pointed out that since 1997 HP has averaged 56 percent of its revenue outside of the United States.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium businesses. For the last four quarters, HP revenue totaled $71.3 billion. More information about HP is available at www.hp.com.

(1) IDC, "Dell, HP, and IBM's Sales Channels for PCs and x86 Servers: Current Market Share by Sales Channel and Future Market Growth," by Rob Rosenthal; October 2003.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at http://www.hp.com.