Press Release: September 02, 2003

HP Commands No. 1 Position in Worldwide Notebook PC Market

HP generates 48 percent unit growth year-over-year, more than doubling the industry average, according to leading market research firm
PALO ALTO, Calif., Sept. 2, 2003

PALO ALTO, Calif., Sept. 2, 2003 – HP (NYSE:HPQ) retained its leadership in worldwide notebook PC sales for the third consecutive quarter, according to the IDC Worldwide Quarterly PC Tracker released Monday.(1) The company increased its market leadership over rivals and accounted for 17.3 percent of the unit market share in the second calendar quarter of 2003.

The report states that HP increased its notebook unit sales at a solid 48.1 percent rate year-over-year. HP's unit growth more than doubled a strong overall market for notebook PCs, which experienced 22.4 percent unit growth year-over-year.

"HP has gained significant share -- easily outperforming the rate of the overall market -- by offering customers the convenience of purchasing through HP partners or direct," said Alex Gruzen, senior vice president and general manager, mobile computing global business unit, HP Personal Systems Group. "Our gains are especially noteworthy since notebooks represent the fastest growing, highest-margin piece of the PC business."

As mentioned recently in the company's third fiscal quarter earnings report, HP's notebook division remained profitable for the quarter, growing revenue 27 percent year-over-year. HP's sequential quarter-over-quarter unit growth of 10.3 percent was two points greater than the nearest competitor and seven times the notebook PC industry.

"Our profitable growth validates HP's strategy to design easy-to-use, high-quality, affordable notebooks that feature the latest technology," said Gruzen. "With unmatched value and innovation, such as our thin, 15.4-inch and17-inch widescreen notebooks, we continue to win awards from prestigious publications and we earn the trust of more new customers every day than any of our competitors."

In the regions of Asia Pacific (excluding Japan) and Europe, the Middle East and Africa, HP experienced dramatic growth of 57.1 percent and 63.1 percent year-over-year, respectively. In the United States, HP holds the No. 2 position with 20.3 percent of the market and 35 percent growth year-over-year and has consistently narrowed the gap to No. 1 in each of the last two quarters.

HP offers a broad portfolio of notebook PCs designed to meet the sophisticated demands of consumers, small- and medium-sized businesses and enterprise customers. The company recently introduced the HP Compaq Business Notebook nc4000, an ultra-portable notebook compatible with the 802.11 a/b/g wireless standards. Also, HP continued its leadership in innovation with the introduction of 15.4-inch and 17-inch widescreen notebooks, including the HP Compaq nx7000, the HP Pavilion zd7000 series and Compaq Presario x1000 widescreen notebooks.

More information regarding HP notebook PC products is available at http://welcome.hp.com/country/us/eng/prodserv/notebooks_tabletpcs.html.

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 $71.8 billion. More information about HP is available at http://www.hp.com.

(1) The market share information is based on IDC's Worldwide Quarterly PC tracker, published Sept. 1 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.