Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Hardware
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Lenovo a Shining Star in PC Market Storm
Lenovo a Shining Star in PC Market Storm

By Barry Levine
November 8, 2013 10:34AM

    Bookmark and Share
A yearly increase of 78 percent in Lenovo's smartphone sales might be impressive enough, but it has also increased its desktop PC shipments in its second quarter year-over-year. The industry as a whole saw a decrease of 7.6 percent, while Lenovo's global PC market share increased to 17.3 percent in the period, up from 15.7 percent a year ago.
 



Other PC makers may be hurting, but Lenovo is not. The world's largest PC maker posted a $219 million quarterly profit on Thursday, boosted by sales of tablets and smartphones.

Lenovo has big plans for smartphones, which currently comprise 20 percent of its sales. The company is planning on increasing that to 50 percent within five years, with a focus on emerging markets.

CEO Yang Yuanqing told news media that the aim was to sell competitively priced smartphones in places where most buyers are not able to afford an Apple iPhone, a strategy which the company has successfully undertaken in Asian markets. In Indonesia, for instance, Lenovo scored a 13 percent market share in a year, with higher profit margins than it achieves in its home base of China.

Increased PC Shipments

Yuanqing told Bloomberg News that, in emerging markets, "the iPhone is probably not the best-selling product," and Lenovo's smartphones can be "much more competitive."

Lenovo, which said its overall smartphone shipments have increased 78 percent year-over-year, is reportedly expecting to sell its smartphones in 20 new markets or more in the next year or two, focusing on the Middle East, Latin America and Africa.

The Chinese company's careful strategy in growing its smartphone market would be impressive enough, but it has also increased its desktop PC shipments in its second quarter, year-over-year. The industry as a whole saw a decrease of 7.6 percent over the same period, while Lenovo said its shipment of 14.1 million PCs in the quarter was the fastest sales growth of PCs for any major vendor. Additionally, Lenovo global PC market share increased to 17.3 percent in the period, up from 15.7 percent a year ago.

Lenovo's tablet sales were also booming, with 2.3 million sold in the quarter, for a 420 percent increase year-over-year.

Interest in BlackBerry?

Charles King, an analyst with industry research firm Pund-IT, told us that Lenovo "recognizes personal computing is not linked to personal computers." It has successfully made the move beyond PCs, he said, even as competitors like HP and Dell have found that the smartphone market is "extremely hard to crack."

King added that Lenovo has "done a very good job of expanding its product families and maintaining high standards of quality," going back to when the company first bought IBM's PC division and, facing doubts by many industry observers, maintained the ThinkPad as what he called "the Mercedes Benz of PCs." The company's successful transition into mobile devices, King said, is helped by its strength in its home market of China, the largest national market in the world.

There have been reports that Lenovo was seriously considering making a bid on all or part of the beleaguered BlackBerry, which could give it access to a major installed base in business and consumer markets but also comes with issues, such as what to do with that company's new and proprietary BlackBerry 10 platform.

But BlackBerry appears to have taken itself off the market this week, receiving a $1 billion cash infusion from investors led by Fairfax Financial Holdings, and replacing its CEO with an interim one. Additionally, a recent report in The Globe and Mail newspaper said the Canadian government had decided that a Chinese owner of Canada's major smartphone maker was not acceptable because of national security, but Lenovo CFO Wong Wai Ming said Thursday that no government has yet indicated such concerns.
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Hardware
1.   Design Central to Microsoft Future
2.   Schools Buy Million Chromebooks in Q2
3.   IRS: Lerner's Hard Drive Destroyed
4.   US Orders a New Cray for Nuclear Arms
5.   IBM Earmarks $3B for Next-Gen Chips


advertisement
Design Central to Microsoft Future
New ethos a break from functional past.
Average Rating:
Most Networks Not Ready for IoT
But most enterprises are prepared.
Average Rating:
Gartner Sees Tablets Up, PCs Down
But PC sales are recovering.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 

Enterprise Hardware Spotlight
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.