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HP Storage Share Slips

Recent reports indicate Hewlett-Packard Co. (NYSE: HPQ) has lost market share in the external disk storage market, highlighting what appears to be an ongoing fuddle in the company's storage division.

In figures released today, IDC shows HP's share of the worldwide external disk storage system market dropped from 19.3 percent in the first quarter of 2003 to 18 percent in the first quarter of 2004. Its share of worldwide networked storage also dropped from 23.2 percent to 22.8 percent in the same timeframe.

Gartner/Dataquestreported this week that HP has dropped from 18.4 percent to 17 percent share of the worldwide external disk storage market on a year-over-year basis.

To keep matters in perspective, HP's still a top player in storage by IDC's and Gartner's lights. IDC ranks it first in the worldwide disk storage system market, with 23.2 percent worldwide market share. Still, that share was 25.6 percent last year.

But HP's performance in external disk storage systems, of which networked storage is a subset in IDC's taxonomy, doesn't reflect well on the company's efforts, particularly as HP's point-shaving is occurring in the context of a general market upswing (see IDC: Networked Storage Up). What's more, HP's losses seem to be matched by gains for rival EMC Corp. (NYSE: EMC), which toppled HP's top spot in external disk storage this quarter with 20.2 percent, up from 17.1 percent this time last year.

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