According to the latest data by market research firm IDC, HP gripped a PC market share of only 8.5% in China and dropped out of the top three, down to fourth in rankings.

The IDC data shows that Lenovo topped the list with a market share of 31.7% while Acer and Dell comes in second and third with a market share of 10.9% ad 10.4% separately. Industry experts remarked that it would be not that easy for HP to compete with Lenovo, Acer and Dell if the company fails to boost its market share to above 10%.

Actually, HP ranked second in the first quarter of last year, but since then its sales decreased drastically and was overtaken by Acer and HP in the second quarter of 2010.

The worse thing is, the company’s recent announcement of PC business spinoff raised concerns over HP PC products’ quality and after-sale service amongst Chinese consumer, which will make the behemoth even harder to fight back to grab 10% of the market.

Last month, HP announced that it will discontinue its operations for webOS devices including the newly released TouchPad and any upcoming webOS phones. The company is also trying to spin off its PC division.

According to IDC, China has replaced U.S. as the largest PC market in the second quarter of this year with a sales volume of over 18.5 million, compared to 17.7 million in the U.S..