Not so: The latest data from research houses Gartner and IDC shows that HP, already the biggest PC maker in the world, managed to grow its share of the market in the most recent quarter, and actually grew faster than the rest of the industry as a whole.

According to Gartner, HP’s share edged up to 17.7 percent in the third quarter from 17.4 percent in the year-ago period, and it sold 16.2 million PCs. By IDC’s reckoning, (Gartner and IDC conduct their counts a little differently) HP commanded an 18.1 percent share of the market, up from 17.8 percent a year ago, and shipped 16.6 million PCs.

The data, along with retail PC sales as tracked by the research firm NPD, is widely watched in the PC industry and, if nothing else, gives some indication as to the reasoning behind the trial balloon story in yesterday’s Wall Street Journal, which said that HP is rethinking its spinoff plans.

Meanwhile, Dell saw its share fall on both lists, and its position fell to third place behind China’s Lenovo, with Acer coming in fourth on a global basis. Apple maintained its third-place position in the U.S. market and grew its share to nearly 13 percent in the Gartner rankings and north of 11 percent on the IDC list.

For HP, a world-dominating market share is certainly nice to have, but meaningless if it’s not profitable — which it is. In fact, despite declining revenues — sales in HP’s personal systems group fell by about $1 billion in the first nine months of fiscal 2011, to $29.5 billion — the company managed to boost its operating margins from 4.8 percent in 2010 to 6 percent so far this year.

We know most of the reasons for the decline. Apple’s iPad has tamped down demand for conventional notebooks, and HP, having sought to create a competitive response with its TouchPad, didn’t have much luck. The impact is especially pronounced in HP’s notebook sales, which is where most of the billion-dollar drop in sales in the PC division were seen during the first nine months of the year. The results were offset, oddly enough, by a $366 million increase in sales of high-end professional workstation computers.

Still, having a big PC business gives a company like HP the leverage it needs to buy parts from suppliers for its more profitable businesses. In HP’s enterprise storage and networking group, operating margins were about 14 percent in the first nine months of the fiscal year, where sales grew by more than $2 billion.

It is easier to negotiate favorable prices from chip and memory suppliers like Intel, Advanced Micro Devices and Micron — and hard drive suppliers like Seagate and Western Digital — when you’re still the world’s biggest consumer of their products. Absent the PC division, HP’s orders from those suppliers would be smaller and incrementally more expensive, as discounts are often negotiated based on the volume of components ordered.

The enterprise business was to be HP’s future under former CEO Léo Apotheker, and there is little question that its emphasis won’t continue to be on the enterprise going forward. But as HP’s new CEO Meg Whitman, chairman Ray Lane and the rest of HP’s management team contemplate the decision to spin off PCs or not, the evidence is mounting that the two faces of HP are inextricably linked.

Marketing companies are experimenting with a new wave of digital technologies to pitch to consumers while they shop: interactive dressing-room mirrors, kiosks with virtual customer-service representatives, and shopping carts and digital scanners that offer personalized discounts.

These futuristic technologies are among the interactive tools on display at Interpublic Group of Cos.’ new retail center at the advertising company’s Media Lab in Los Angeles.

There, Interpublic is testing innovative ways for marketers to connect with customers as part of an effort to better understand what makes consumers buy and to encourage companies to rethink their approaches to the role of the retail store.

Retailers are grappling with lackluster sales and consumers who are dissatisfied with the store experience as online shopping with its related interactivity becomes mainstream. Shopper satisfaction at retail stores is declining up to 15 percent a year, according to an ongoing IPG Media Lab study of more than 10,000 North American shoppers.

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Netflix (NFLX) has agreed not to rent the Time Warner (TWX) studio’s movies for the first 28 days after they go on sale. In return, it will pay the studio a reduced fee when it does rent the discs, and will get more movies to offer via its growing Web streaming service.

Hard to get a very good sense of the deal because no dollar signs have surfaced so far. But the broad strokes sound good for both sides: Warner gets a big distributor to help it protect its retail sales for a bit longer, and Netflix gets to reallocate the money it spends from discs to digital.

Here’s Ted Sarandos, Netflix’s Hollywood emissary, via Reuters:

Sarandos declined to comment specifically on the economics of the deal but said it represents meaningful savings in terms of what it spent on Warner’s physical discs in 2009. He said, however, Netflix was reinvesting those savings in streaming.

“On a net basis in 2010, we’re growing our spending on the studios even if we are saving on physical DVDs,” he said, adding he expects this trend to continue as more and more customers seek movies through its streaming service.

“In 2010, Netflix will spend $600 million on postage,” said Sarandos who envisions “moving that entire bucket of spending to Hollywood and out of the post office.”

Note that this is exactly the agreement that Warner and other studios have not been able to strike with Redbox, the upstart rental outfit, which has led to a legal fight.

And it helps Netflix answer a question I hear more and more often these days: When will it be able to expand its selection of digital movies, which right now remains just a fraction of its physical catalog?

I’ll be able to ask CEO Reed Hastings that question myself on Friday during an interview at the Venetian Hotel in Las Vegas, where the All Things Digital team is gathering for the annual Consumer Electronics Show. You can listen in to what Hastings has to say at CES via a Web-streaming offering of our own Friday afternoon. Some details here, and more to come.

The European Commission claims that Microsoft’s practice of bundling Internet Explorer with Windows violates European competition laws, so the company strips IE out of European versions of Windows 7. Now the Commission can’t argue that Microsoft’s behavior distorts fair competition in the browser market because, well, there’s no browser.

And if there’s no browser, there’s no need for the “must carry” provision the EC is mulling, which would require Microsoft (MSFT) to ship Windows 7 with a choice of browsers, rather than with IE alone.

And if there’s no “must carry” provision, Microsoft’s rivals in the browser market must continue to bear the costs of their own advertising and distribution (I’m talking to you, Opera). They can’t piggyback on Windows as the provision would have allowed.

And if there are no browsers whatsoever bundled with Windows 7, the European Commission’s constituents are going to be very unhappy. Because they’ll be paying full price for a defeatured version of Windows 7. Microsoft can call it Windows 7: FeU Edition and it can launch with a splash screen that says “Due to the limitations imposed upon Microsoft by the European Commission, this version of Windows does not include a Web browser or media player. It does, however, include the e-mail address of European Commissioner for Competition Neelie Kroes with whom Microsoft encourages you to voice your displeasure.”

And make no mistake, they will be buying Windows. And in the end, that’s what’s important, right? A Windows user browsing the Web with Opera or Firefox is still a Windows user. And hey, they may soon be a Bing user as well.

Well played, Microsoft.

No wonder the EC is already wrinkling its nose at the move. “The Commission will shortly decide in the pending browser tying antitrust case whether or not Microsoft’s conduct from 1996 to date has been abusive and, if so, what remedy would be necessary to create genuine consumer choice and address the anticompetitive effects of Microsoft’s longstanding conduct,” the EC said in a statement issued late Thursday. “In terms of potential remedies if the Commission were to find that Microsoft had committed an abuse, the Commission has suggested that consumers should be offered a choice of browser, not that Windows should be supplied without a browser at all….As for retail sales, which amount to less than 5 percent of total sales, the Commission had suggested to Microsoft that consumers be provided with a choice of web browsers. Instead Microsoft has apparently decided to supply retail consumers with a version of Windows without a web browser at all. Rather than more choice, Microsoft seems to have chosen to provide less.”

Perhaps. But Microsoft’s obligation isn’t to provide more choice. It’s to refrain from restricting it, which is exactly what the EC demanded and exactly what Microsoft is doing here. Sadly for Redmond, it’s likely too little, too late. The tone of the EC’s response and its mention of “Microsoft’s longstanding conduct” clearly suggest that the agency continues to mull corrective action. So in the the end this may be all for naught. But you can’t say that Microsoft didn’t attempt to “restore genuine consumer choice and enable competition on its merits,” as the EC has called upon it to do. It just didn’t take on the costs of advertising and distributing the browsers of its rivals. And, honestly, who can blame it?

Not bad for a product that’s been around just 15 months. And, remember, these are pre-Beatles: Rock Band sales. When Viacom’s MTV Games ships that title on 9/9/09 (Get it? “Number nine, number nine, number nine.”), the franchise will be well on its way toward the $2 billion barrier, though it make take quite a bit longer to reach it. The public’s appetite for music games like Rock Band and rival Guitar Hero is said to be cooling, with sales expected to be flat in 2009. “[These games are] certainly losing steam,” Pacific Crest Securities analyst Evan Wilson told the Los Angeles Times recently. “This year will establish the direction that this genre will go. Maybe it continues to take off. Maybe it tops out at 15 percent of the software market. Or it could just turn out to be a fad. I think the latter two scenarios are most likely.”

According to a new report by Forrester Research (FORR), e-commerce sales (beyond travel) are likely to grow 11 percent to $156 billion in 2009. That marks a slowdown from 13 percent growth last year and 18 percent in 2007. The major factor contributing to the pace shift is, of course, declining consumer confidence.

But e-commerce’s slowed pace is still far better than the National Retail Federation’s forecast .5 percent drop in overall retail sales this year.

That means e-commerce is stealing market share from traditional retail–and fast. By Forrester’s estimates, in 2008 e-commerce accounted for five percent of all retail sales (excluding cars, travel and prescription drugs). In 2012, Forrester thinks e-commerce could have an eight percent share.

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Commerce reported a 2.7 percent drop in retail sales in December, the sixth consecutive monthly decline. The report showed a 1.9 percent decline in sales at catalog and Internet retailers.

Pacific Crest analyst Steve Weinstein this morning said that Q4 e-commerce sales appear worse than expected. He estimates that sales were up one percent in October, then down more than three percent in November and more than four percent in December. He estimates total online sales in the quarter were down four percent, falling short of his previous forecast for flat growth.

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And that’s exactly what consumers are looking for, according to Google (GOOG).

“We’ve seen quite an increase in queries for things like discounts and bargains and things like that,” Google CEO Eric Schmidt told “Meet The Press” this past weekend. “And we know that shoppers are using the Internet to get better pricing.”