There has been a significant decrease in the pricing of tablets and PC’s in the market and the latest company to join in on this race is Hewlett-Packard Company (NYSE:HPQ). HP has announced the launch of its new series of ultra thin notebooks and tablets. The company is set to introduce two tablets which will be priced under $150, as well as two laptops which will be priced between the ranges of $200 – $230. A few weeks ago HP also launched its 14-inch notebook which was priced at $300.

The two tablets and laptops along with the notebook are all built using with thin client architecture, making use of solid state instead of the hard disc storage within the system. They also have a storage service in the cloud which is provided by Microsoft. Hewlett-Packard Company (NYSE:HPQ) through these gadgets are aiming at the market that is currently run by Goggle’s Chromebook and inexpensive tablets like Kindle, other similar systems like Asus and Acer also cater to that market. Hewlett-Packard Company (NYSE:HPQ) has the advantage because it is targeting the market with something extra, like the Windows 8.1 and Office 365.

Microsoft has been trying to bring forward its Windows operating system for tablets and low end laptops but Google’s Android Operating System has been giving it a tough competition. The launch by Hewlett-Packard Company (NYSE:HPQ) is a huge opportunity for Microsoft to boost its system for the tablets. The price points that HP is keeping points to the fact that Hewlett-Packard Company (NYSE:HPQ) is trying to target the upcoming markets where the customers are more aware of the kind of money that they spend on technology.

Hewlett-Packard Company (NYSE:HPQ)’s PC and work station is ranked on number 4; it subsidizes 29% to its revenue as well as makes about 11% of its alleged value. Gartner declared that in the year 2014 PC shipment is expected to decline to 276.22 million. On the other hand the global shipment is expected to increase in 2014 by 25% to 251.30 million. According to a prediction made by IDC, the overall growth rate for tablets will fall down because of the consumer stress.

Keeping in mind the consumer stress, the hardware manufacturers have shifted their focus on the upcoming countries, which involve over 85% of the world population. According to Fidelty Investment Ltd. these people contribute to almost 3 quarters of the global GDP growth. Although the majority of the people that reside in these countries are below the poverty line, however, the remaining elite or middle class make the 20% of the population. As the economic developments will take place in these countries, it is expected that many people will earn better incomes in the future. according to a research done by Deutsche Bank, as the purchasing powers in developing countries advance, discretionary spending will increase which will boost demands for luxury objects like tablets and notebooks.

On Monday, September 29^th, Hewlett-Packard Company (NYSE:HPQ) disclosed the suite of hardware. The two new launches by HP are;

• HP stream 7-icnh and 8-inch. The 7-inch will be available for $99, and the 8-inch will be available for $149. The tablets will both be powered by Intel Celeron processor and will use Windows 8.1 operating system.
• HP stream laptops. The 11.6 inch model which will be available for $199 will have an HD display and the 13.3 inch model which will be available for $229 will have a touch display. Both the versions will be powered by Intel Celeron processor and have fanless designs.

Hewlett-Packard Company (NYSE:HPQ)’s expectations

HP is hoping to crack the market which is dominated by Google Chromebook and the tablets of Apple and Samsung with the help of these new launches. The tablets are set to hit the market in November and the launch is crucial for both Hp as well as Microsoft, as Microsoft is also competing with the Android market. Hewlett-Packard Company (NYSE:HPQ) is expected to generate a decent amount of revenue through its launch and leave its mark in the market of low priced tablets.

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