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Lenovo plans to topple Dell for No. 2, takes shot at HP

updated 12:40 pm EDT, Fri September 9, 2011

Lenovo expects to pass Dell in PC sales in 2011

Lenovo chairman Liu Chuanzhi in comments bragged of his company's position in the PC space and expected to take the second place spot away from Dell this year. Lenovo's current pace was quick enough that it would happen in the last few months of the year. CEO Yuanqing Yang pointed to an existing quick pace but also took a dig at HP's possible exit from PCs, suggesting that it wasn't an iPad effect but weak will and poor performance at HP that was leading it to wither in the face of smartphones and the iPad.

"PCs continue to be a very strong core business for us," he said. "Even as we invest in new areas like tablets and mobile internet, we see great opportunity in PCs around the world. We are committed to the PC space for the long term and expect it to continue to fuel profitable, balanced global growth for Lenovo."

The current keeper of the ThinkPad has had multiple key advantages in its current growth. Being native to China has helped it take advantage of a rapidly growing market for PCs in the country, but it has also had success in Europe and elsewhere. A deal with NEC and a buyout of Medion have both consolidated Lenovo's share in key areas and, in the case of Medion, may have been to outpace Apple.

Long-term concerns still exist for Lenovo. Its IdeaPad K1 and ThinkPad Tablet have so far been met with tepid reviews, and the company has no real presence in smartphones outside of China. HP and Dell have faced tough prospects in China, but Apple's mobile efforts have seen it grow its Southeast Asian revenue sixfold in one year and both its iOS devices and Macs become high-demand if luxury items.

Some of Lenovo's chances are also based on stumbles from others. Acer's overdependence on netbooks and refusal to acknowledge the iPad as a threat have sent its share plunging. Dell and HP have also been blamed for at times overly large product lines, too much focus on cheap notebooks, and a lack of any real presence in the mobile world.



By Electronista Staff
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Comments

  1. facebook_Robert

    Via Facebook

    Joined: Sep 2011

    +2

    China = Superpower

    China is a superpower, that is dominant in many fields and will likely achieve greater dominance as time goes on.

    They aren't trying to solve the conundrum of how to borrow *more* to stimulate the economy, at the same time borrowing *less* to prevent bankruptcy.

    And, the chinese companies aren't expecting the government to help them compete, they are planning to compete on their own - and win.

    China still has that profit religion. What HP has - is margin religion.

    They aren't the same thing. The reason people get margin religion - and end up throwing away still profitable businesses, is they are worried those profitable business will become like an anchor around their neck. They want to survive the coming financial apocalypse - whether real or perceived, and to do so, they believe being in a high margin business - is their best bet.

    I'm not saying this to hurt anyone's feelings. If you want to win versus China - compete.

    If you want to cede low margin businesses to China, then they get those jobs, the tax base, and the profits, that you gave them.


  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +1

    China = Sweatshop

    China is a sweatshop, that is dominant in cheap labor and will likely achieve greater dominance as time goes on.

  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +6

    Acer has less than 10 years to live

    Re: "Acer's overdependence on netbooks and refusal to acknowledge the iPad as a threat have sent its share plunging. "

    Acer's CEO has said that iPad's popularity is a "fever" that will subside. It may, but not for 10 years or more. And by then, Apple will have launched their post-post-PC device to replace it. We'll see if Acer survives that long.

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