Lenovo a Shining Star in PC Market Storm

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?

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