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PC MARKET WORLDWIDE (source: http://www.gartner.com/it/page.jsp?id=1981717 )
Worldwide PC shipments totaled 89 million units in the first quarter of 2012, a 1.9 percent
increase from the first quarter of 2011, when shipments reached 87.3 million units, according to
preliminary results by Gartner, Inc. These results exceed Gartner's earlier projections of a 1.2
percent decline for the quarter.
"The results were mixed depending on the region, as we saw the EMEA region perform better
than expected, while Asia/Pacific performed below expectations, in part because of slow growth
in India and China," said Mikako Kitagawa, principal analyst at Gartner. "While the PC industry
has high expectations for strong growth in the emerging markets, the slowdown of thesecountries in this quarter provides a cautionary notice to vendors that the future growth for the PC
industry cannot heavily depend on the emerging markets even though PC penetration in these
regions is low."
"In general, the hard-disk drive (HDD) supply shortage had a limited impact on PC supply
during 1Q12. There was a moderate impact on selected markets, such as low-end consumer
notebooks and the white-box market in selected regions. Still, low PC demand was able to mask
the tight HDD supply overall."
Although PC vendors typically experience low consumer PC sales in the first quarter, Gartner's
preliminary results reveal worse-than-normal consumer PC shipment growth. The weak
consumer PC demand is in part because of intensified competition for consumers' budgets.
Device vendors that focus on a limited product line will get only a small portion of the consumer
wallet. Companies such as Apple can be clear winners because of comprehensive product/service
offerings, which gain a large part of consumers' spending.
HP increased its share as the global market leader, as it accounted for 17.2 percent of worldwide
PC shipments in the first quarter of 2012 (see Table 2). HP was able to secure HDD inventory,
unlike 4Q11 when it was faced with a shortage issue. HP's growth also indicates that internal
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management issues were resolved, and analysts said it appears HP was able to restore some of
the business it lost as a result of those issues.
Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q12 (Units)
Company
1Q12
Shipments
1Q12 Market
Share (%)
1Q11
Shipments
1Q11 Market
Share (%)
1Q12-1Q11
Growth (%)HP 15,305,413 17.2 14,785,739 16.9 3.5Lenovo 11,629,510 13.1 9,075,667 10.4 28.1Dell 9,826,121 11.0 9,984,358 11.4 -1.6Acer
Group 9,684,524 10.9 10,660,254 12.2 -9.2
ASUS 5,361,994 6.0 4,420,328 5.1 21.3Others 37,171,419 41.8 38,357,841 43.9 -3.1Total 88,978,981 100.0 87,284,188 100.0 1.9
Note: Data includes desk-based PCs and mobile PCs, including mini-notebooks but not media
tablets such as the iPad.
Source: Gartner (April 2012)
Lenovo experienced the strongest growth among the top five vendors, as its shipments increased
28.1 percent in the first quarter of 2012. Lenovo has been enjoying healthy growth in the professional market, while the company successfully expanded into the consumer space.
Dell underperformed in most regions compared with a year ago. For the first time in two years,
Dell experienced a year-over-year shipment decline in the Asia/Pacific market. Gartner analysts
said early indications suggest that Dell's relatively low shipments were mainly due to low-end
consumer systems, to which Dell gave low priority. Dell's investments seem to be more focused
toward businesses.
In the U.S., PC shipments totaled 15.5 million units in the first quarter of 2012, a 3.5 percent
decline from the same period last year (see Table 2). Gartner analysts had expected the market to
decline 6.1 percent in the quarter.
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"The consumer segment continued to be a drag on market growth, as PC demand was low," Ms.
Kitagawa said. "The HDD supply shortage moderately impacted the very low-end consumer
notebook market, so channels could not run aggressive promotions with very low-end systems.
Questions remain on whether low-end systems can attract consumers, as their attention has
moved to other devices."
HP experienced the strongest growth among the top five vendors in the U.S., as its shipments
grew 6.6 percent, and its market share reached 29 percent in the quarter. Apple was the only
other vendor among the top five to show growth in the quarter, as its shipments increased 3.8
percent.
Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 1Q12 (Units)
Company
1Q12
Shipments
1Q12 Market
Share (%)
1Q11
Shipments
1Q11 Market
Share (%)
1Q12-1Q11
Growth (%)HP 4,493,516 29.0 4,213,342 26.2 6.6Dell 3,459,925 22.3 3,587,716 22.3 -3.6Apple 1,640,814 10.6 1,580,200 9.8 3.8Acer
Group 1,418,043 9.1 1,913,473 11.9 -25.9Toshiba 1,349,900 8.7 1,669,700 10.4 -19.2Others 3,158,05020.3 3,126,14919.4 1.0Total 15,520,247100.0 16,090,581100.0 -3.5
Note: Data includes desk-based PCs and mobile PCs, including mini-notebooks but not media
tablets such as the iPad.
Source: Gartner (April 2012)
PC shipments in EMEA totaled 28.2 million units in the first quarter of 2012, a 6.7 percent
increase from the same period last year (see Table 3).
"The EMEA PC market grew faster than the worldwide PC market because of solid demand
from the professional market as organisations executed long-awaited Windows 7 plans," said
Ranjit Atwal, research director at Gartner. Demand came from Western Europe as well as
emerging markets, and it strengthened the desk-based PC market. Gartner estimates that the
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EMEA desk-based PC market will account for 40 percent of total PC shipments in 2012. "The
desk-based PC isn't dead yet," added Mr. Atwal.
Table 3
Preliminary EMEA PC Vendor Unit Shipment Estimates for 1Q12 (Units)
Company
1Q12
Shipments
1Q12 Market
Share (%)
1Q11
Shipments
1Q11 Market
Share (%)
1Q12-1Q11
Growth (%)HP 5,763,866 20.55,028,851 19.1 14.6Acer
Group
3,810,749
13.5
4,177,199
15.8 -8.8Dell 2,482,420 8.82,318,108 8.8 7.1ASUS 2,343,568 8.31,945,997 7.4 20.4
Lenovo 2,303,137 8.21,555,106 5.9 48.1Others 11,449,881 40.711,367,382 43.1 0.7Total 28,153,622 100.0 26,392,643 100.0 6.7
Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks but not media
tablets such as the iPad.
Source: Gartner (April 2012)
Growth in PC shipments to Central and Eastern Europe was slightly higher than expected, with
improved demand from Russia and members of the Commonwealth of Independent States, andmore modest upturns in other countries. The Middle East and Africa also had an upbeat quarter,
with spending returning to the consumer market.
Although there was no change in the ranking of the top five vendors, vendors' performances
varied. HP not only retained the No. 1 position, but increased its market share and its lead over
its closest rivals, Acer and Dell. Lenovo exhibited the best growth, thanks to solid increases
across its desk-based and mobile PC lines. Acer continued to reduce its inventory levels, and was
the only top-five vendor to show a decline.
Overall, the EMEA PC market had a very weak 2011, not helped by the shortage of HDDs.
However, the relative stability of the economic environment gave vendors an opportunity to
replenish inventory and meet demand for professional PCs.
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In Asia/Pacific, PC shipments reached 30.3 million units in the first quarter of 2012, a 2 percent
increase from the first quarter of 2011. In China, shipments of desk-based PCs decreased
significantly as there was no longer a rural PC program in place to drive demand. In India, the
Tamil Nadu deal, operated by local government to provide free laptops to students, was supposed
to be executed in the first quarter, but it has been postponed to subsequent quarters.
The PC market in Latin America declined 3.2 percent in the first quarter of 2012, as shipments
totaled 9 million units. Mobile PC shipments grew 0.4 percent over the first quarter of 2011,
while desk-based PC shipments decreased 7.6 percent. Many white-box PC vendors had depleted
inventory due to the HDD shortage.
PC shipments in Japan grew 11.5 percent in the first quarter of 2012, as shipments reached 4.4
million units. The double-digit growth was due in part to the very weak performance in 1Q11,
which was affected by the earthquake and tsunami in Japan in March of last year.
"The first quarter of 2012 was a transitional period as the PC industry is awaiting two big
releases: Intel's Ivy Bridge and Microsoft's Windows 8. Both are expected to be launched this
year. Although these new releases are not expected to stimulate demand as much as the industry
hopes, they will affect PC supply so that there will be artificial supply control before and after
the product releases. There will be few products rolled out into the market until these major releases have taken place," Ms. Kitagawa said.
PC Volume to Grow Almost 5% in 2012, But Will Expand Further in 2013 and Beyond,
According to IDC (http://www.idc.com/getdoc.jsp?containerId=prUS23549112 )
FRAMINGHAM, Mass., June 19, 2012 The worldwide PC market is expected to grow 5%
year over year in 2012, in what is likely to be a challenging year. According to the International
Data Corporation ( IDC) Worldwide Quarterly PC Tracker , nearly 383 million PCs will ship into
the market this year, a slight improvement over the tepid growth seen in 2011 as PCs continue to
vie for growth amidst intensifying competition from alternative devices, global political
uncertainty, and a still bumpy economic roadmap.
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In addition to rising consumer saturation in mature regions, economic uncertainty as well as the
launch of Windows 8 and growth of competing tablet devices are key factors affecting the
market outlook. With the threat of a relapse into recession in several markets adversely affecting
public spending and business confidence, the forecast for several key segments has been
reduced, especially among small and medium-sized firms. Windows 8 could help to reinvigorate
a consumer market that has lost a degree of enthusiasm in recent years. However, questions
about the release date, functions, and pricing for Windows 8 limit the contribution the new
operating system may make in 2012. Consumer PC shipments are expected to see modest growth
in 2012 with the revamp of a sleeker Wintel platform fueling additional growth in 2013 through
2016. IDC expects the forecast period to culminate with total PC shipments topping 528 million
units in 2016.
"The first quarter PC volume results showed an uptick over our forecast," said Jay Chou , senior
research analyst with IDC's Worldwide Quarterly PC Tracker. "However, much of the volume
was due to a faster-than-expected recovery of hard disk drive (HDD) supply related to flooding
in Thailand. PCs continue to face pressure from a weak economic environment and growing
competition. Consumer sentiment could be revived with UltraBook or Ultrathin systems
provided the right price is reached. More price-cutting in the Android tablet landscape could free
up some budget for PC purchases, but could also focus consumers on tablets rather than PCs.
Ultimately, we expect modest PC growth this year as the industry works through the transition to
Win8 and related devices."
"In the United States, the PC market will continue to witness the perfect storm over the next two
quarters before we see any meaningful resumption of growth. Most consumers and businesses in
need of PCs already have PCs and see no immediate reason to upgrade or expand. The market is
also evolving amid a heated presidential election campaign, adding more stress to consumer and
business confidence, with both segments refraining from spending or hiring. The good news,
however, is that the forthcoming release of Windows 8 promises to bring new classes of products
that could lead to a stronger refresh cycle as the year ends," says David Daoud , research
director, Personal Computing at IDC.
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IDC continues to have a conservative view toward PC purchases in mature markets, which are
generally expected to return to growth mode in 2012 after a contraction in 2011. Meanwhile,
headwinds from the Euro crisis are increasingly being felt in the emerging markets, the previous
stalwarts of growth. The outlook for emerging markets has become more mixed with Central
Europe, Middle East and Africa (CEMA) increasing its outlook while Asia/Pacific (excluding
Japan) and Latin America will experience slower growth in the short term.
PC Shipments by Region and Form Factor, 2011-2016 (Shipments in millions)
Region Form Factor
2011
Units
2012*
Units
2013*
Units
2014*
Units
2015*
Units
2016*
UnitsEmerging Market Desktop PC 98.9 100.8 104.3 107.6 110.1 112.4Emerging Market Portable PC 110.1 123.6 140.7 162.6 187.0 213.7
Emerging Market Total PC 209.0 224.5 245.0 270.2 297.0 326.0
Mature Market Desktop PC 56.1 57.0 57.2 56.0 55.6 53.8Mature Market Portable PC 99.4 101.1 111.4 124.7 138.0 148.7Mature Market Total PC 155.5 158.2 168.6 180.7 193.6 202.5
Worldwide Desktop PC 155.0 157.9 161.5 163.7 165.7 166.2Worldwide Portable PC 209.5 224.8 252.1 287.3 324.9 362.4
Worldwide Total PC 364.5 382.6 413.6 450.9 490.6 528.5
Source: IDC Worldwide Quarterly PC Tracker, May 2012
Notes
* Forecast data
Mature Markets include U.S., Western Europe, Japan, and Canada. Emerging Markets include Asia/Pacific (excluding Japan), Latin America, Central and
Eastern Africa, Middle East and Africa.
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PC Shipment Volume Growth by Region and Form Factor, 2011-2016
Region Form Factor 2011 2012* 2013* 2014* 2015* 2016*Emerging Market Desktop PC 3.1% 1.9% 3.4% 3.2% 2.3% 2.1%Emerging Market Portable PC 19.4% 12.3% 13.8% 15.6% 15.0% 14.3%Emerging Market Total PC 11.1% 7.4% 9.1% 10.3% 9.9% 9.8%
Mature Market Desktop PC -8.4% 1.7% 0.3% -2.0% -0.8% -3.2%Mature Market Portable PC -8.6% 1.8% 10.2% 11.9% 10.7% 7.8%Mature Market Total PC -8.5% 1.7% 6.6% 7.2% 7.1% 4.6%
Worldwide Desktop PC -1.4% 1.8% 2.3% 1.4% 1.2% 0.3%Worldwide Portable PC 4.2% 7.3% 12.2% 14.0% 13.1% 11.5%Worldwide Total PC 1.8% 5.0% 8.1% 9.0% 8.8% 7.7%
Source: IDC Worldwide Quarterly PC Tracker, May 2012
Notes:
* Forecast data Mature Markets include U.S., Western Europe, Japan, and Canada. Emerging Markets include Asia/Pacific (excluding Japan), Latin America, Central and
Eastern Africa, Middle East and Africa.
This chart is intended for public use in online news articles and social media. Instructions on
how to embed this graphic are available by clicking here .
Taxonomy Note: PCs include Desktop, Mini Notebook and other Portable PCs, and do not
include handhelds or Media Tablets such as the Apple iPad or Android Tablets
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PC Market in India
Indian PC market expected to grow 8% in 2012: StudyBS Reporter / Mumbai Apr 28, 2012, 00:15 IST
(Source: http://www.business-standard.com/india/news/indian-pc-market-expected-
to-grow-8-in-2012-study/472839/ )
Personal computer (both notebook and desktop) sales are expected to grow by eight per cent for the year 2012, said
CyberMedia Research. PC sales grew six per cent in 2011.
Notebook PCs that made up 44 per cent of the sales in 2011 are expected to grow at 13 per cent while desktop
computer sales are expected to grow by four per cent, leading to a marginally better growth projection of eight per
cent, said Sumanta Mukherjee, lead analyst, information technology practice, CyberMedia Research in his preview.
Some of this growth will also come from ultrabooks and all-in-one-desktops (AIOs). Ultrabooks were introduced in the
Indian PC market in 2011, but shipments remained niche due to high price-points. As prices rationalise, ultrabooksare likely to become mainstream by end of 2012.
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Mukherjee also believes AIOs are likely to see an increase in adoption driven by demand from the BPO-ITeS
segment, due to the attractiveness of the form factor in terms of savings in real-estate cost and lower overall power
consumption. Beyond this, aesthetics are expected to drive adoption in front-office and consumer settings.
This year will again see branded PC manufacturers maintaining their edge over the assembled market. The hard disk
prices which were badly affected due to constrained supplies on account of the 2011 floods in Thailand are expectedto regularise by JAS quarter of 2012. Hence, the assembled PC market is expected to remain subdued for the better
part of 2012, said he.
Computer market growth sluggish in Q1 due to high
inflation and increased pricesShelley Singh, ET Bureau May 25, 2012, 02.14PM IST
(source: http://articles.economictimes.indiatimes.com/2012-05-25/news/31852246_1_first-
quarter-total-pc-shipments-vishal-tripathi )
NEW DELHI: High inflation and increased prices has resulted in sluggish growth for the personal
computer (PC) market in the first quarter of 2012. The combined desk-based and mobile PC market in
India totallednearly 2.8 million units in the first quarter of 2012, a 6.6% increase over the first quarter of
2011, according to Gartner, Inc, a technology advisory firm.
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"Consumer buying accounted for 47% of total PC sales in the first quarter of 2012, which is down 3%
from the fourth quarter of 2011," said Vishal Tripathi, principal research analyst at Gartner.
"This underlies the fact that high inflation and increased prices have forced users to either prolong the life
of their devices or postpone their purchase decision. The increase in excise and import duties also played
a part in decision making postponement."
White boxes (including parallel import), which accounted for 45% of the overall desktop market, declined
20% in the first quarter of 2012 in comparison to the first quarter of 2011. Mobile PCs, with a 27%
increase from the first quarter of 2011, helped drive overall market growth.
The partial execution of the Tamil Nadu government order helped Lenovo's PC shipments grow 64% and
reach the No. 1 postion in the first quarter of 2012. HP's PC shipment grew 21%, whereas Dell declined
11% compared to the first quarter of 2011.
Multinational brands contributed more than half of the total PC shipments in the first quarter of 2012, withshipments from Acer, Dell, HP and Lenovo , the top four vendors, representing 54.5% of the market.
Local vendor HCL's PC market share dropped to 5.8% in the first quarter of 2012, as it experienced a
13% year-on-year decline from the first quarter of 2011.
Indian PC sales surge by 8.6% in Q2 despite
slowdownIshan Srivastava , TNN | Aug 21, 2012, 05.47PM IST
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(Source: http://timesofindia.indiatimes.com/city/chennai/Indian-PC-sales-surge-by-8-
6-in-Q2-despite-slowdown/articleshow/15586654.cms )
CHENNAI: The India PC market shipments for Q2 2012 (April - June) stood at 2.86 million
units, a sequential gain of 8.6% over the previous quarter while the year-on-year growthstood at 15.7%.
""Despite the environment around costs being volatile and unpredictable, consumers
continued to be demanding, which has largely enabled the PC growth in Q2 2012. Further,
fulfilments for the ELCOT project in Tamil Nadu for a second successive quarter ensued
growth in commercial PC market as well,"" said Kiran Kumar, senior analyst at IDC.
Lenovo continued to be the market leader with 17.1% share of the market with Hp coming insecond with 13.7% share. HP tipped Dell to take the second place. ""HP's success is largely
owing to their linearity measures to lift the performance of their channel partners, which
resulted in a constructive growth for the vendor. Further, introduction of new series of
budget laptops coupled with a good balance of product mix continued to boost their growth
in Q2,"" said Kiran. Despite having a high brand awareness in the country, Dell slipped to
the third spot as the vendor stuck to its strategy of playing in the mid to high end price
bands.
Lenovo (2012), http://www.lenovo.com/lenovo/in/en/our_company.html
About Lenovo
Lenovo creates and builds exceptionally engineered personal technology, but we are much more
than a tech company. We are defining a new way of doing things as a next generation global
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company. That means we are years ahead of the game in terms of understanding what it will
take to win 5, 10 years from now.
Formed by Lenovo Groups acquisition of the former IBM Personal Computing Division,
Lenovo builds on its dominant position in China to grow globally. The expansion from East to
West such as by introducing our newest products in China and then spreading across the globe
is a new way of viewing the world, one we believe will be the way of the future.
That focus on the future is based on a strong history of success that is driving results today. Long
the leader in China, Lenovo is growing rapidly and winning market share in all parts of the
world. This balanced growth is what has made Lenovo the fastest growing major PC company
and enabled us to consistently grow faster than the market.
Achieving optimal balance in all that we do is Lenovos operating philosophy. This mindset
encompasses every aspect of Lenovos business, from balancing leadership with consensus- building, to valuing both short- and long-term thinking. As a result, we have created a balanced
business model and strategy that take maximum advantage of profit and investment across both
core and new businesses. The result is balanced performance and market share growth across all
regions, customer segments, products and business models.
Our mission is to become one of the worlds great personal technology companies. We aspire to
achieve this objective by leading in three key areas:
Personal Computers: Lead in PCs and be respected for our product innovation and
quality.
Convergence: Lead the industry with an ecosystem of devices, services, applications
and content for people to seamlessly connect to people and web content.
Culture: Become recognized as one of the best, most trusted and most well-respected
companies to work for and do business with.
Our Values
At Lenovo we view our culture as a critical asset as important as an effective business model.
We call our culture the Lenovo Way, and at its most basic, that culture is reflected in the
statement: We do what we say and own what we do.
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Our values serve as the foundation of our company and define who we are and how we work.
Principal among them are:
Serving Customers
Trust and Integrity
Teamwork Across Cultures
Innovation and Entrepreneurial Spirit
Our Heritage
Lenovo came about as the result of the merger of two of the most storied companies in
technology and business: Legend Holdings in China and IBMs Personal Computing Division in
the United States. The merger was heralded as a watershed event in global business with the
potential for integrating two disparate cultures, languages, processes and markets.As a result, Lenovo embodies the unique market possibilities in combining the best of East and
West -- joining North American and China-based technology players in the creation of a unified
global PC leader with growing market positions in developed and emerging markets alike. With
more than $16 billion in annual revenue, Lenovos market strength spans not only market
geographies but also the worlds consumer and business PC markets.
A Worldwide Leader
Lenovo is one of the worlds largest makers of personal computers and makes the world's most
innovative PCs, including the renowned ThinkPad notebook as well as products carrying the
ThinkCentre, ThinkStation, ThinkServer, IdeaCentre and IdeaPad sub-brands.
Today, Lenovo is a global corporation with significant operations on six continents and operating
in more than 60 countries and selling products in 160. Everyone at Lenovo takes great pride in
our ability to attract top talent from diverse backgrounds and from around the world. We view
our differences and diversity as a source of strength in building a collaborative culture that helps
us achieve our goals.
We have no world headquarters and, instead, have put in place a distributed management
structure that places operational hubs in centers of excellence around the world integrating this
talented, diverse group into a cohesive Next Generation company.
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Our multicultural management team is free to convene wherever and whenever it makes the most
sense. Lenovo has operations hubs in Beijing, Raleigh, NC, and Paris, a marketing hub in
Bangalore, India, and major research centers in Yokohama, Japan; Beijing, Shanghai and
Shenzhen, China; and Raleigh, North Carolina.
The company employs more than 23,000 people worldwide, including 1,700 designers, scientists
and engineers, representing a broad collection of nationalities and languages but at the same time
working with one unified language and vision: to build the worlds most exceptionally
engineered personal computers.
Two Roads to Creating a PC Powerhouse
In 1981 , IBM launched its Personal Computing Division which literally invented personal
computing with such innovations as the first laptop computer, the precursor to the ThinkPadnotebook, synonymous with innovation and quality.
In 1984 , Legend Holdings was founded in China with just 11 computer scientists and $25,000 in
cash, with the idea of delivering information technology more rapidly to consumers and
businesses in China.
In 2003 , Legend began marketing its products under the Lenovo brand, melding the "Le" from
Legend with "novo," the Latin word for "new." It officially changed its company name from
Legend to Lenovo a year later.
In 2005 , Lenovo Groups acquisition of IBMs PC division essentially combined the market
strength of Lenovo in China and elsewhere in Asia among consumers with IBMs leadership
position in Europe and North America among business PC users.
In 2007 , Lenovo launches the IdeaPad line of consumer-branded PC products and drops the use
of the IBM logo on all its products two years ahead of schedule.
In 2008 , Lenovo completed its entry into the server market with the launch of the
ThinkServer portfolio, designed to deliver a better server experience for small and medium
business customers.
Innovation: A Core Value
Lenovo owns the greatest track record for innovation in the PC industry and remains committed
to innovation in its products and technology. Innovation is how Lenovo achieves competitive
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differentiation and drives new market opportunities, such as mobile internet, digital home and
cloud computing.
Lenovos innovation strategy is based on a two-tiered approach to solving real-world customer
problems:
Focus the majority of development on ideas that can be brought to market within 24
months
Invest longer term in research targeting game changing big plays
Lenovo operates seven research and development centers and more than 46 world-class labs,
including major research centers in Yokohama, Japan; Beijing, Shanghai and Shenzhen, China;
and Raleigh, NC. The company employs more than 1,700 engineers, researchers and scientists
and has received more than 100 major design awards. Lenovos R&D centers have produced
some of the world's most important advances in PC technology, ranging from the original "bento box" PC notebook design in 1992 to the 2008 launch of the innovative ThinkPad X300
"Kodachi," heralded as one of the world's lightest, thinnest and most innovative full-featured
notebook PCs ever. Lenovo's commitment to innovation introduces more industry firsts and
technology that sets the bar for business users as well as consumers, including:
The LePhone smartphone that delivers fantastic style, small size and a unique
interface targeting the high-growth China mobile convergence market
The ThinkPad Edge, providing ThinkPad quality and functionality to the sophisticated
small business market
The ultimate goal of Lenovo's R&D team is to improve the overall experience of PC ownership,
while driving down the cost of ownership. The company is rich in talent, with teams that have
won hundreds of technology and design awards including more than 2,000 patents and
introduced many industry firsts:
TrackPoint pointing device (the little red button)
ThinkPad design - one of the industrys most silent PCs
VeriFace : Lenovos face recognition technology that creates a digital map that
becomes the systems password.
Dual-screen mobile workstation: combining unique design with complex
engineering to meet the needs of high-demand computing environments.
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Our Commitment to Corporate Citizenship (CSR)
Lenovo is committed to being a responsible and active corporate citizen, consistently working to
improve its business while contributing to the betterment of our local communities, the
environment and society overall. Lenovo practices corporate citizenship in many ways:
Product quality and safety: Lenovo is focused on the safety of our products
throughout their entire lifecycle, from manufacturing, transportation and installation to
use, service and recycling or disposal.
Safe and Healthy Workplaces: Lenovo prides itself on creating a world class
experience for its at facilities across the planet from our headquarters and sales offices
to our R&D labs to the manufacturing floor. In addition to meeting the legal requirements
of the countries in which we do business, we ensure our employees have safe equipment
and facilities; offer competitive compensation packages; and support stringent voluntaryworkplace safety standards.
The Highest Ethical Standards: Lenovo is committed to the highest standards of
integrity and responsibility, including respecting and protecting intellectual property. We
provide guidance to every employee on a wide range of issues concerning ethical business
practices, securities trading, health and safety, and compliance with government
regulations.
Concern for the environment: Lenovo is committed to environmental responsibility
in all aspects of its business, from product design and supplier selection to manufacturing,
facilities management, transportation and logistics and product lifecycle management,
including recycling and reuse.
Donating time and resources to philanthropy: Lenovo and its employees are
committed to helping those less fortunate and, when disaster strikes, to lend a helping hand
to those who can no longer provide for themselves. Soon after the devastating earthquake
in Sichuan Province in May, 2008, nearly 4,000 Lenovo employees made financial
donations for disaster relief while hundreds more lined up to donate blood. In addition,
Lenovo has committed 1% of its pre-tax income to programs and initiatives that serve
society to address issues in areas of great need, no matter where those areas or issues
happen to be.
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Our Competitive Spirit
Lenovos thirst for excellence extends from our products to our sponsorships. The global
spotlight shone brightly on the Lenovo brand during the 2008 Olympic Games in Beijing, where
the company leveraged its role as a global partner of the International Olympic Committee and
presenting sponsor of the Olympic Torch Relay.
What's more, Lenovo demonstrated its technical strengths in delivering a flawless performance
that met the unprecedented demand of the Beijing Games. A network of 30,000 pieces of
equipment, including desktop and notebook computers, touch-screen devices and printers
supported by more than 600 Lenovo engineers.
Building on the success of its sponsorships of the Beijing Olympic Games, Lenovo performed a
similar role in providing technology and support for the Shanghai World Expo in 2010.
Introduction LENOVO
(Source downloadable as Acrobat Reader: From Legend to Lenovo From Trading Business to Global Brand
By Celia, Au Sau Yin (04701194G)
As of 28 th Sept, 2007/9/28 web link: http://www.google.co.in/url?sa=t&rct=j&q=competitive+advantage+of+Lenovo+2012&source=web&cd=3&ca
d=rja&ved=0CFQQFjAC&url=http%3A%2F%2Fwww.sd.polyu.edu.hk%2Fweb
%2Fdownload
%2FLenovo.pdf&ei=DOEzUKC8HYHsrAeB6IGoBA&usg=AFQjCNHtzHoRnEB3Ale1bRJZ
7D9hZ0fGbA )The Lenovo Group, previously known as the Legend Group, is Chinas largest
computer manufacturer. It is also the third largest computer producer in the world. In
this report, I will analyze the reason behind its success.
In 1984, a group of energetic electronics engineers came together and shared their
knowledge for developing and creating digital tools. Their goal was to apply their
ideas on different aspects of life in order to improve peoples standard of living. The
Legend Group was thus conceived.
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As a local company in China, the Legend Group made use of their competitive
advantage over foreign computer giants to successfully seize the largest personal
computer market share in China in the first two decades of its business. However,
beyond the China market, the Legend Group was known merely as an OEM company
of other foreign computer brands such as IBM. In order to enter the international
market, the Legend Group maximized their strength by cooperating with other
companies to compensate for their weaknesses. Therefore, in 2004, they acquired
IBM ThinkPad and PC business to get the state-of-the-art computer manufacturing
technologies, business management techniques, customer base as well as the already
well-built brand names. Based on the acquired technologies, they began to develop
their own computer products using the new brand name Lenovo and they were
marketed globally.Besides producing their own computers, Lenovos business also includes trading and
OEM, and system solution services that cover different industrial sectors like
government, private companies and individual users, to provide the best solution to
satisfy the customers need.
Lenovo Named One of the World's Most Reputable
Companies by Reputation Institute Study
Published: June 14, 2012
(Source: http://markets.on.nytimes.com/research/stocks/news/press_release.asp?
docTag=201206131358BIZWIRE_USPRX____BW6400&feedID=600&press_symbol=185010 )
RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Jun. 13, 2012-- Lenovo, the
second largest PC company in the world, has been named one of The Worlds Most
Reputable Companies, according to the Reputation Institutes 2012 Global RepTrak 100,
a reputation study of more than 100,000 consumers that assesses the reputations of the
http://markets.on.nytimes.com/research/stocks/news/press_release.asp?docTag=201206131358BIZWIRE_USPRX____BW6400&feedID=600&press_symbol=185010http://markets.on.nytimes.com/research/stocks/news/press_release.asp?docTag=201206131358BIZWIRE_USPRX____BW6400&feedID=600&press_symbol=185010http://markets.on.nytimes.com/research/stocks/news/press_release.asp?docTag=201206131358BIZWIRE_USPRX____BW6400&feedID=600&press_symbol=185010http://markets.on.nytimes.com/research/stocks/news/press_release.asp?docTag=201206131358BIZWIRE_USPRX____BW6400&feedID=600&press_symbol=185010http://markets.on.nytimes.com/research/stocks/news/press_release.asp?docTag=201206131358BIZWIRE_USPRX____BW6400&feedID=600&press_symbol=185010 -
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worlds most prominent companies. This is the second consecutive year that Lenovohas
been recognized in this prestigious survey.
This achievement capped the most successful year in company history marked by rapid
global business growth with full-year record sales of nearly $30 billion,propelling Lenovofrom the #4 position to become the worlds second largest PC company in
the world.
During Lenovos fourth fiscal quarter ending March 2012, the company was the fastest
growing of the top four vendors for the 10 th consecutive quarter and saw its worldwide
shipments increase 44 percent year over year. In addition to its PC leadership fueled by its
legendary Think branded commercial product line and fast-growing Idea brand consumer
PCs -- Lenovo is also the worlds 4th
largest tablet manufacturer, has built a rapidly growingsmartphone business and recently launched its smart TV business inChina.
The third annual Global RepTrak assesses the reputations of the worlds largest and most
viable companies by surveying consumers across 15 countries. The RepTrak model
measures the health of a company's reputation across stakeholders, countries and
industries.
About Lenovo
Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a $US30 billion personal technology
company and the second largest PC company in the world, serving customers in more
than 160 countries. Dedicated to building exceptionally engineered PCs and mobile internet
devices, Lenovos business is built on product innovation, a highly efficient global supply
chain and strong strategic execution. Formed by Lenovo Groups acquisition of the former
IBM Personal Computing Division, the Company develops, manufactures and markets
reliable, high-quality, secure and easy-to-use technology products and services. Its product
lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as
well as servers, workstations, and a family of mobile internet devices, including tablets and
smart phones. Lenovo has major research centers in
Yamato, Japan;Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina.
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Lenovo profit up by 30 pc but growth stumbles (Source:http://articles.economictimes.indiatimes.com/2012-08-16/news/33232903_1_pc-sales-pc-
shipments-pc-market )
Lenovo Group on Thursday said its quarterly profit rose 30 per cent on strong sales in
developing markets but growth slowed amid global economic weakness.
The world's second-largest personal computer maker said it earned $144 million in the three
months ending June 30 on $8 billion in global sales. The profit growth rate was down from the previous quarter's 59 per cent increase.
PC shipments in the Asia-Pacific region and Latin America rose 59.2 per cent while those to
Europe, the Middle East and Africa were up 62.3 per cent.
``Despite uncertainties in global economic conditions impacting the PC market in the short term,
we will remain focused to outperform the worldwide PC market in a profitable way,'' said chief
financial officer Wong Waiming in a conference call with reporters.
``Our strategic investments in mobile internet have started contributing to the growth in sales and
improved profitability.''
The company passed Dell Inc. last year as the second-biggest PC maker and said Thursday it has
narrowed the global market share gap with industry leader Hewlett-Packard Co.
Lenovo said it sold 5 million smartphones in China in the quarter, passing PC sales by number of
units for the first time.
The company, with headquarters in Beijing and in Research Triangle Park, North Carolina got
into wireless Internet in 2010. It has launched smartphones and Web-linked tablet computers to
compete with Apple Inc., South Korea's Samsung Electronics Corp. and Taiwan's HTC Corp.
Lenovo launched its latest ThinkPad notebook last week and said it is designed to appeal to users
who want the convenience of a tablet, with a faster startup, lighter weight and longer battery life.
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High quality global journalism requires investment. Please share this article with others using
the link below, do not cut & paste the article.
Lenovo close to passing HP in PCs
(Source:
http://www.ft.com/cms/s/0/48b2481e-
e78d-11e1-8686-
00144feab49a.html#axzz24Cr2DqZi )
By Maija Palmer in London and Kathrin Hille in Beijing
Lenovo is close to surpassing Hewlett-Packard as the worlds leading manufacturer of personal
computers following a strong quarterly rise in sales.
The Chinese company now has a 14.9 per cent share of the global market, compared with 15.5
per cent for HP, according to figures from IDC, the research company.
Lenovo beat estimates on Thursday with a 30 per cent rise in quarterly profits as it benefited
from sustained appetite for PCs by Chinese consumers and businesses.
However, even Chinese sales are showing some signs of cooling as the countrys economic
boom slows. It was Lenovos slowest profit growth for a year and a half.
But Yang Yuanqing, chairman and chief executive, said he was not concerned over the countrys
long-term economic strength.
Chinas macroeconomy has shown some uncertainty because of real-estate bubble controls and
weak exports. But from a long-term point of view, Im still very optimistic, he said.
Lenovo saw sales rise 35 per cent to $8bn in the quarter to the end of June, while net profit rose
30 per cent to $141m. Basic earnings per share for the first fiscal quarter were 1.37 cents.
The rises come at a time when the PC market overall has stopped growing, with consumers more
interested in spending money on smartphones and tablets.Figures from Gartner, the research company, last month showed a 0.1 per cent decline in overall
global sales.
Lenovo, which makes ThinkPad computers, is gaining market share thanks to aggressive pricing
and overseas acquisitions as well as strong sales in China. The company bought Germanys
Medion Computers last year to bolster its European market position.
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However, profit margins have become very thin within the industry. Most computer
manufacturers are trying to enter the market for tablet computers, but it has so far proved
difficult to compete with Apples popular iPad products.
The computer hardware manufacturers now also face a new threat from Microsoft, which is
planning to launch its own tablet, called Surface, later this year.
However, Mr Yang dismissed the threat from Microsoft. Although we dont like Microsoft
providing hardware, for us it just adds one more competitor. [Theyre] just one of our many
competitors. They are strong in software but [we] dont believe they can provide the best
hardware in the world. Lenovo can, he said.
This is in contrast to comments earlier this month from JT Wang, Acers chief executive , who
said that Microsofts move would have a negative impact on the worldwide computing
ecosystem.Shares in Lenovo, which have more than trebled in value since the beginning of 2009, were up a
further 6.2 per cent at HK$6.60 on Thursday.
LENOVO IN INDIA
Rebooting SuccessLenovo makes a comeback with nimble footwork on strategic front
(Source: http://businesstoday.intoday.in/story/lenovo-comeback-india/1/22955.html )
Hands poised for action, Arvind Anand stares at a ThinkPad in a tiny meeting room in
Lenovo India's office in Bangalore. He glances briefly at a wall adorned with a panoply of
posters screaming out the firm's latest battle cry: For those who do. Then, Anand's attention
goes back to the notebook before him.
Methodically, he begins taking it apart to show off its ruggedness. There is material in there
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that is used to make aircraft. There are features inspired by the cat, which ensure there is
no damage in a fall. There are features inspired by the owl, to keep the machine's fans
silent. The keyboard is an arty piece of work that has earned a place in the Museum of
Modern Art in New York...
It is little things such as these that have made this device, launched two decades ago, an
iconic notebook. Internally, it goes by the moniker, cocaine, since many CXOs get addicted
to the device once they start using it.
In a rush: Lenovo India MD Amar Babu Radha Krishnan is in a hurry to get
the company to the No. 1 spot
Anand is the product manager for the ThinkPad, which Lenovo inherited from IBM when it
acquired its personal computer (PC) division in 2005.
The Chinese company is now looking to revitalise the brand , since a whole newgeneration has entered the country's workforce over the last five years with little knowledge
of the product.
Revitalising old product lines is just one part of Lenovo's India strategy. It has also
introduced new products, reduced inventory, followed a new distribution strategy, and
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backed it all with a sharp marketing strategy.
Over the last few quarters, these measures have helped the Chinese company script one of
the biggest turnarounds in the history of India's PC industry.
In the March quarter of 2009, Lenovo India, with a unit share of only 4.7 per cent, was the
No. 5 player in the Indian market, behind HP, HCL, Dell and Acer.
By the December quarter of 2011, the firm had risen to the No. 2
position, behind Dell, with a share of 13.7 per cent, according to IDC,
a market intelligence firm. Lenovo has grown consistently over the
last year, even as Dell and HP, its nearest rivals, saw their marketshare fluctuate.
The gains have also come at a time when the overall PC market has
remained flat in terms of revenues. IDC's data shows that the
industry's revenue was at $5.5 billion in 2011 and $5.4 billion the year before. During that
period, Lenovo India grew 45 per cent to $800 million (Rs 3,966 crore).
Essentially, the Chinese firm has clawed its way back into the reckoning. After theacquisition, it had suffered a heavy erosion in market share.
According to Cybermedia Research, in 2004/05, IBM's PC division was No.2 in notebooks,
behind HP, and No. 3 in desktops, after HCL and HP. By 2009/10, it had plummeted to the
No. 4 position in notebooks and No. 6 in desktops.
The Chinese brand was unknown in India. The consumer and small and medium enterprise
(SME) segments had opened up but Lenovo only had (IBM) products for large enterprises.
By the time current Managing Director Amar Babu Radha Krishnan took over in 2007, the
firm's top management was in disarray. Many executives had moved back to IBM,
disappointed with Lenovo India's functioning.
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"My first task was to rebuild the
management team," recalls Babu, as
the Lenovo India MD is commonlyreferred to. "We were also not
consistent with our partners. So they
did not trust us."
A management rejig resulted in at
least nine new faces in leadership
positions. Many of them went to
China, where Lenovo is No. 1, to takelessons in success. An executive from
China was airdropped into India to fix
the consumer and SME business.
Lenovo also picked entry-level SME
and mainstream products from the
China stable and launched them in
India. Today, its share of the SME
market is 6.8 per cent. As for the
enterprise market, its stronghold, it
has a 23.3 per cent share.
Lenovo India also worked hard to win
back the trust of channel (distribution)
partners, cutting the payment cycle
from four months to 45 days. It
increased the number of exclusive
retail stores, increasing its presence
from 150 towns to 350, with 840 retail
stores.
HOW HP LOST ITS CROWN
Even as Lenovo India set
about fixing its distribution
strategy, HP was busy
making a mess of its own
network.
Under Personal Systems
Group Head Sunil Dutt, who joined in 2009, the
firm decided to rope in mobile handset distributors
to sell PCs. On paper, it seemed like a sound
move.
The telecom channel reached into far-flung corners
of the country and would have lowered HPs
distribution costs. However, selling a PC, which
costs upwards of Rs 15,000, proved to be very
different from selling handsets, many of which cost
less than Rs 2,000. In certain regions, there were
too many partners and not everybody could sell IT
products.
The move drove many loyal HP distributors into the
arms of its rivals. Lenovo India was a big
beneficiary of this shift.
HP also had leadership challenges. "Management
stability was lost when 25 per cent of middle
management left the organisation within a year.
Secondly, HP stopped advertising whereas
competition increased it," says Vishal Tripathi, an
analyst with Gartner India.
In the first quarter of 2009, HP was on the top with
an 18 per cent share. The company lost its No. 1
position in the second quarter of 2010 to Dell.
Since then, the ride has been a bumpy one.
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More are in the offing to give a fillip to the consumer business, where it is still a minnow.
The company is No. 4 in this segment, with an 11.9 per cent share, and faces growing
competition from Sony, which has grabbed 20 per cent of the volumes in the notebook
market.
One of the lessons from China was on making the supply-chain more efficient. Lenovo India
reduced the inventory it held since unsold stock had been forcing it to introduce new
technology later than the competition.
"I have brought down inventory by about two-three weeks. Today, I am leading technology
transitions in the market," says Babu. Better supply-chain planning has also resulted in
lower expenses. Lenovo India now ships products in rather than flying them. As a result,
freight charges have come down to $3-4 per notebook compared to $18-20 by air.
"The channel had to wait three weeks for delivery after orders were booked from enterprise
customers a few years back. It was difficult for us to break into any new account," says S.G.
Arun, Founder of 3inSolutions, a distributor.
Today, the company follows a stock-and-sell model, where fast-moving products are keptwith distributors. Thus far, it was worked well. "Lenovo listened to the channel in a way IBM
never did," adds Arun, who has worked with IBM and Lenovo for 16 years.
But, is the momentum sustainable? Some of Lenovo India's market share gains have come
about by undercutting the competition. It has made very low bids for government contracts.
Recently, for instance, it won an order for 300,000 notebooks from the Electronics
Corporation of Tamil Nadu.
Click here to Enlarge
The Chinese firm's bid was at Rs 14,000 per
notebook while the retail price is almost Rs
10,000 more, say industry watchers.
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"Government contracts do pull down margins but you have to play the portfolio game," says
Rahul Agarwal, Lenovo India's Executive Director for Commercial Business. By that he
means offsetting low-margin sales in one segment with higher margin sales in another. The
company is silent on profits but clarifies that it is not getting into a mode where the bottom
line will bleed too much.
"We became No.2 in a quarter where we won no large deals (December quarter). This
means the business is based on fundamentals," asserts Babu, his forehead creasing as he
stresses the point.
But global analysts are not too excited. In a report published in October last year, Gartner
said price pressure in the market is forcing Lenovo to commoditise its products further. This,
it said, would impact some of the hardware differentiation, which has always been a
hallmark of the ThinkPad brand.
With retail consumers lapping up IT products at a rapid pace, Lenovo also has to prepare
for new realities, especially in the world of tablets. Here, it has no brand recognition. A few
months ago, it launched seven-inch and 10-inch tablets, which have largely remained
invisible in the marketplace. A five-inch model is due to be unveiled in July this year.
Lenovo India's top brass believes there is space for four screens in everybody's life - a PC,
mobile phone, tablet and television. Eventually, it plans to have a presence in all four
segments.
It also plans to have a cloud service that would allow customers to store content remotely
and access it from any of these devices. But first, it will have to sustain its current
momentum and get well ahead of the competition. Not easy in the crowded bazaar that the
hardware market has become today.
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Lenovo emerges as top PC seller in India, overtakes
Dell & HPET Bureau May 15, 2012, 04.21AM IST
(Source: http://articles.economictimes.indiatimes.com/2012-05-15/news/31711729_1_indian-
pc-market-lenovo-india-pc-penetration )
BANGALORE: For the first time, Chinese personal computer maker Lenovo has cornered the largest
share in the overall Indian PC market, overtaking Dell and Hewlett-Packard (HP), according to data from
market researcher IDC.
Latest data shows that Lenovo has a market share of 15.8% in the three months to March 31, compared
to 10% in the previous period, which had put the Chinese PC-maker at 4th spot then. Dell, which is at
number two spot, saw its market share shrink by 2.6 % while HP follows with a market share of 14.9 % in
the March quarter.
With the top spot switching among HP, Dell and Lenovo, Indian PC market is witnessing high competition,
especially as the PC penetration here is extremely low and hardware makers sense a long-term
opportunity.
Lenovo's push to the top was aided by a large order from the Tamil Nadu government to supple free
laptops to graduating school children - a promise made during last year's state assembly elections. A few
months ago, Tamil Nadu announced procurement of 9 lakh laptops at about 14,000 a piece. Lenovo,
along with HCL Infosystems and Acer, had bagged the contract.
Coming out of a slump, the Indian PC market grew 7.7% in the first quarter of the year as a revival in
consumer sentiment backed by strong sales in semi-urban areas pushed sales upwards.
According to IDC, nearly 2.63 million units were shipped from January to March this year. Consumer
segment grew the most at 19.6% in the first quarter of 2012 over the same period last year.
"Consumer-led sales are a healthy sign," said Adwaita Govind Menon, associate director & head of new
products at the Indian arm of IDC.
"The growth in the consumer category is seen primarily in the portable PCs as consumer purchase
pattern shifts away from the desktop devices towards more compact and mobile devices such as
notebooks, mini-notebooks and other ultra portable PCs," said Kiran Kumar, senior market analyst at IDC.
As governments in Uttar Pradesh and Punjab gear up to fulfil election promises, more such government
deals are likely to happen in the last quarter of this fiscal year.
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Despite being the festive season, computer sales had gone down in the December quarter last year
because of a shortage of hard disks and fluctuations in the value of rupee against other currencies,
especially dollar. Brands that are importing components or the whole PC to sell it in India are struggling
because of the price rise and foreign exchange fluctuations.
"Everyone is making a loss in the Tamil Nadu deal," said Menon. Though sequential growth of 7.7 % is
encouraging, a year-on-year growth of 3.5% is not enough, feel PC makers.
"Comparatively, emerging markets are growing 15-16%," said Amar Babu, Managing Director, Lenovo
India. Going by the low PC penetration level, India should grow much faster and consumer buying needs
to go up, said Babu.
Weaker Demand in India
Lenovo Expects Weaker India DemandBy DHANYA ANN THOPPIL
(Source:
http://online.wsj.com/article/SB10001424052702303734204577464172709637252.html )
BANGALORE Lenovo Group Ltd. expects demand for its personal computers to weaken in India
this financial year as economic growth slows and a weaker local currency increases the pressure
on the company to raise product prices.
"The overall environment is not very positive and it does impact consumer sentiment," Amar Babu
R.K., managing director of Lenovo India Pvt. Ltd., said Wednesday.
The comments from the world's second-largest PC maker come at a time when it is battling
concerns over a slowdown in its home market, China, where it is the top supplier of PCs byshipments. The company has been looking at key emerging markets like India and Brazil to boost
its sales.
Lenovo, which became the No. 1 PC brand in India for the first time in the quarter through March,
is confident of maintaining its market leadership in the country, Mr. Babu added.
http://online.wsj.com/search/term.html?KEYWORDS=DHANYA+ANN+THOPPIL+&bylinesearch=truehttp://online.wsj.com/article/SB10001424052702303734204577464172709637252.htmlhttp://online.wsj.com/public/quotes/main.html?type=djn&symbol=0992.HKhttp://online.wsj.com/search/term.html?KEYWORDS=DHANYA+ANN+THOPPIL+&bylinesearch=truehttp://online.wsj.com/article/SB10001424052702303734204577464172709637252.htmlhttp://online.wsj.com/public/quotes/main.html?type=djn&symbol=0992.HK -
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Lenovo plans to build on India top spotUpdated: 2012-08-06 10:18
By Tuo Yannan in Bangalore, India ( China Daily)
(Source: http://www.chinadaily.com.cn/bizchina/2012-
08/06/content_15646490.htm )
Lenovo-exclusive store owner S. Habeeb (center) showing his customers Lenovo laptopproducts in his Ba
ngalore store. Two months ago, Lonovo introduced its tablet PC to the Indianmarket. [Photo/China Daily]
PC maker given a boost by sales at smaller stores that are exclusive
Lenovo Group Ltd, the world's second largest PC maker, will continue to expand in the Indianmarket
by opening more than 300 new shops next year. It plans to maintain its leading marketposition in Chi
na's biggest neighboring country, which it earned in the first quarter of this year,one of Lenovo's exec
utives told China Daily.
Amar Babu, managing director of Lenovo India, has been working in India's IT industry for morethan
23 years.
As a veteran, he worked for many multinational companies before he was recruited by Lenovo.
When Babu firststarted hi
s career withLenovo thre
e yearsago, the Chinesec
ompany's marketshare wa
s only about4.8 percent i
n theworld's second most
populous country,behind
otherinternational brandss
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uch as Hewlett-Packard and Dell.Lenovo is now the largest PC player in India with an overallmarket
share of 15.8 percent, according to the US-based IT research company IDC.
"The biggest difference in the sales channel between the Chinese PC market and the IndianPC mark
et is retailers. Unlike the Chinese market, stores in India are multi-brand and quitesmall," he explaine
d.
After much research of the market, Babu and his Chinese headquarters decided to adaptLenovo's e
xperience in the Chinese market to build a sales system in India.
"We made an unusual decision in the India market, which was to open exclusive stores insteadof sell
ing our products in multi-brand stores," Babu said.
He explained that because a while ago Lenovo's brand and name weren't familiar to Indiaconsumers
, in order to boost sales, the company needed to build up its reputation first.
"We only had about 150 exclusive stores back in 2009 but now we have more than 1,000stores in th
e market. All of them are exclusive stores," Babu said.
"We almost completely copied our Chinese business model in the Indian market, although thesales c
hannels in lower-tier cities are not as strong as in China," said Yang Yuanqing,president and chief ex
ecutive officer of Lenovo.
In addition to Lenovo exclusive stores, Babu and his team also invented a localized small formatstor
e called "LES Lite". Compared with big exclusive stores, an LES Lite store occupies 300sqaure feet (
91 square meters).
Now the company has about 1,000 Lenovo exclusive stores in India, which were the main boostto its
sales last year. The company's sales revenue grew sevenfold last year compared with2010.
S. Habeeb used to have two multi-brand stores in India's technology city Bangalore but heconverted
one of them into a Lenovo-exclusive store last year.
"HP's exclusive store is on the other side of the street but after customers browsed both stores'produ
cts, I think I got more sales," said Habeeb, the shop owner.
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Even though the company experienced significant growth during the last few years, it still can'trid itself of the
image of an industrial brand, which was inherited from IBM. Six years ago, thecompany took over IBM's pers
onal computer business and also IBM's manufacturing in India.
The company's next target is to boost its consumer sector sales, said Babu. Yang said thecompany's industrial
PCs are produced according to orders but the number of consumerdevices is decided after research.
The PC market in India is huge, Babu said. The PC penetration rate in India is still less than 10percent. It avera
ges about 16 percent in emerging countries and 87 percent in mature markets,according to Milko van Duijl, se
nior vice-president of Lenovo Group.
Two months ago, the company introduced its tablet PC into the Indian market. Tablet shipmentsin India are ex
pected to grow sharply from 3 million in 2011 to 23.6 million in 2017.
However, Babu also mentioned that there are differences between the Chinese and Indian ITmarkets. Accordin
g to the US-based IT research company IDC, China's IT spending was aboutfour times more than India's in 20
11. In the PC market, the gap was even wider, at 6.9 times in2011.
Overall IT spending in India is roughly about $30.2billion and is expected to grow at 21.3percent annually to r
each $65.3 billion by 2015, said the research company.
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PC industry growth in India lags other emerging
economies: Amar Babu, Lenovo India MDET Bureau Jun 8, 2012, 04.20PM IST
(Source: http://articles.economictimes.indiatimes.com/2012-06-08/news/32124491_1_pc-
penetration-pc-brand-pc-vendors )
MUMBAI: Global PC maker, Lenovo, sees PC industry growth in India coming below other emerging
economies such as Indonesia, China and Brazil.
A host of factors such as poor broadband connectivity and lack of local content are contributing to the
poor single digit growth, Lenovo India MD Amar Babu said in an interview with ET.
"Afffordability is not the issue. If people can afford smartphones, PCs are not more expensive.
Consumers need to feel the relevance of the PC," Mr Babu said.
Lenovo, which became the top-selling PC brand in India in the first quarter of 2012, said there would be
very minimal growth if government orders were not taken into consideration. India has single digit PC
penetration and despite being a six times bigger market, growth in China continues to outstrip India, he
said.
"People ask me if it (poor growth) is because the PC is dead. But where have tablets made a mark in
India? Tablets have done well in mature markets as a secondary device where people already have a
PC," he pointed out, adding, "Higher PC penetration among SMEs (small and medium enterprises) and
consumers improves productivity."
Lenovo has been improving market share globally and in India on the back of a 'protect and attack'
strategy it launched three years ago to expand in areas where it was weak and protect turf - the
enterprise market - where it is strong. Globally, it is the second highest selling PC brand.
In India, on the back of this strategy it has set up about 1000 exclusive Lenovo outlets and made inroads
into government and consumer markets. In India, Lenovo has the largest chunk of a mega 900,000 laptop
order placed by the Tamil Nadu at 300,000 units.
Unlike enterprise contracts, government contracts don't have an exchange rate clause, which protects
vendors against spikes, Mr Babu said.
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Earlier this year, PC vendors faced trouble over hard disk shortages after Thailand floods affected supply.
"But even that pales in comparison before the exchange rate volatility," he said, "It is not so much the
depreciation but the volatility - 10 per cent fall (of the rupee against the dollar) in one month."
Lenovos Strategy For Commercial Business in India
(Source: http://www.crn.in/Hardware-009Aug012-Lenovos-Strategy-For-
Commercial-Business.aspx )
Ramdas S, CRN, August 9, 2012, 1400 hrs
Lenovo India is chalking out fresh strategy to strengthen its commercial business by re-aligning partners,
widening its product portfolio, and enhancing its GTM. There are also plans to revamp the Thinkpad range
to commemorate 20 years of the notebook brand.
Though Lenovo was ranked the No 1 PC brand in the country by IDC and Gartner for Q12012, the research
agencies attributed its leadership position to the large Elcot deal to supply 85,000 notebooks. But Rahul
Agarwal, Executive Director, Commercial Business, Lenovo India, argued, Even if you discount the Elcot
deal, when it comes to commercial business we are still the market leader. Since 2010, we have doubled
our market share in the commercial business, and today have an overall share of 24.5 percent as per IDC.
Our long-term goal is to be the No 1 PC vendor outside of large deals such as Elcot.
Recently there were allegations that Lenovo had reduced the back-end rebates for partners focused on
large enterprise accounts, thus reducing overall margins. Agarwal countered this and said that performing
partners would actually earn more with the new rebate alignment. Any change in the rebate alignment is
purely reflective of our growth rates, and we want our partners to continue growing at a faster pace.
Lenovo had in early 2012 re-aligned its commercial business across verticals Global, Very Large
Enterprise (VLE), Large Enterprise (LE), Government and Education. Said Agarwal, Irrespective of who
the customer is, partners have some role to play. Even in an order such as Elcotwhere we are billing
directly because of credit-line issues and marginspartners are involved in installation, delivery, post-
sales support and telephonic support.
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According to Agarwal, Lenovo enjoys market shares of 20 percent plus across VLE, Education, Government
and Global. We are perhaps not doing well in the LE segment where our share is less than 12 percent
but we will soon catch up.
Lenovo has also identified accounts for the relationship business and has aligned partners across these
accounts. We have around 200 global accounts, 1,600 accounts in VLE, 2,400 in LE and 4,000 in
education. We have identified and named partners who will work on many of these accounts. Further, we
are working with a definite list of partners for each vertical, and have set targets depending on the vertical
and partner profile. For example, we have l isted 90 partners for the education vertical.
Agarwal said that Lenovo would re-launch its server business, and would be launching thin clients under
the Lenovo brand following the acquisition of Wyse (which had an OEM relationship with Lenovo) by Dell.
Other products being launched include a small form factor PC nicknamed Tiny.
Lenovo launches world's smallest enterprise desktop
PCsPTI Jul 13, 2012, 08.52PM IST
(Source: http://articles.economictimes.indiatimes.com/2012-07-13/news/32663866_1_lenovo-desktop-pcs )
MUMBAI: Electronics major Lenovo today said it has launched the world's smallest enterprise computers,
continuing its efforts to strengthen the product portfolio for this segment.
The products ThinkCentre M72e and ThinkCentre M92p Tiny desktop PCs are priced at Rs 23,500 and
above (excluding taxes and without operating system).
Being the industry's first enterprise 1L PCs, the M72e and M92p offer superior performance and high
reliability, the Chinese company said in a statement.
Trends in the enterprise PC industry suggest that an increasing number of organisations now prefer PCs
that occupy less space and consume less energy yet perform at optimal levels, it added.
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Desktop PCs in India
Acer pips HP; becomes No. 1 in local desktop salesET Bureau Mar 15, 2012, 05.00AM IST
(Source: http://articles.economictimes.indiatimes.com/2012-03-15/news/31196933_1_pc-market-
desktop-market-pc-maker )
BANGALORE: Taiwanese computer maker Acer Inc has emerged as the number one desktop seller in India during
2011, after seeing some ups and downs during the year that was marked by component shortage and aggressive price wars among multinational vendors.
With a 13.2% market share in the last quarter of 2011, as per data from market researcher IDC, Acer wrested the top
spot from Hewlett-Packard, the US hardware giant that is still reeling under the impact of repeated top-level
management changes, that is affecting its performance not just in India but elsewhere as well.
In the desktop space, Indian firm HCL Infosystems had the second spot after Acer, with a market share of around
8%. During 2011, Acer topped sales in the desktop category for nine months but slipped to the number two slot
during the July-September quarter, only to bounce back during the last three months of the year. However, in the
overall PC market in India that includes laptops and other mobile computing devices such as tablets, Dell is the
leading vendor, with Acer at the number four slot.
Large orders from the government was one of the factors that helped Acer increase its sales volumes in the country,
according to its chief marketing officer S Rajendran. HP's recent announcements about plans to hive off its PC
business as well as its decision to replace its chief executive Leo Apotheker with former eBay chief Meg Whitman
made customers wary, giving competitors such as Acer an opportunity to use the moment of weakness to gain
market share.
Another significant factor that helped Acer is the inability of unbranded or assembled PC sellers to cope with the
price fluctuations during the year. Following floods in Thailand, one of the global harddisk manufacturing hubs, the price of the storage device soared literally pushing it out of reach for most informal players.
With a PC-penetration of only about 8%, India is still considered a virgin market with a lot of headroom to grow
even as desktop market has been shrinking in most developed markets such as North America and Europe, where
consumers are migrating to mobile computing devices such as laptop, netbook or even tablet devices.
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