Date: 02-11-12 05:23
The following is a February 10, 2012 article titled "Analyst: Lenovo set to dethrone HP in PC market" found at the ZDNet Asia web site:
By Liau Yun Qing
Lenovo has recorded its highest-ever market share for worldwide shipment and in China during its third fiscal quarter for 2011/2012, says the Chinese PC maker. Analyst notes that continued growth will push the company to become the top PC vendor, overtaking current leader Hewlett-Packard (HP).
Announcing on Thursday the results of its third financial quarter (PDF) of 2011/2012, ended Dec. 31, 2011, Lenovo said it was the ninth quarter in the row that it grew faster than any of the other top four PC manufacturers. It recorded its highest market share, contributing 14 percent of global shipment volume and 35.3 percent of the Chinese market.
Beau Skonieczny, research analyst for computing practice at Technology Business Research (TBR), said: "Lenovo is on track to oust HP as the No. 1 global PC vendor." In fact, he added that the Chinese PC maker is already the top provider for the worldwide consumer desktop market as well as the leading commercial notebook manufacturer, driven by PC demand from the Chinese and emerging markets.
Lenovo's robust performance was driven by all three of its market segments, namely, China, emerging markets and mature markets. The company reported that mature markets contributed 43 percent of its worldwide sales, while China accounted for 42 percent and the remaining in emerging markets.
According to Skonieczny, increased household spending in China and emerging markets drove the adoption of PC, especially desktops. For Lenovo, unit sales of desktop grew 32 percent year-over-year, making it the top provider of consumer desktops, said the analyst.
"Lenovo's notebook sales were equally impressive," he added, noting that the company's laptop shipment rose 41 percent compared to the same quarter in 2010.
In mature markets, revenue growth for Lenovo was over 80 percent year-on-year, driven by the acquisition of Medion in Germany and partnership with NEC in Japan, he said.
"TBR believes Lenovo will continue to benefit from increased brand awareness among the consumer markets in Western Europe and Japan, which will help establish long-term revenue streams and build traction in the mature consumer space," the TBR analyst added.
Last year, research firm IDC reported that the Thai floods in October could disrupt PC shipments in 2012. However, Skonieczny said Lenovo could weather through the shortage of hard-disk drives (HDDs) through stringent cost controls and higher margin PC sales.
The article may be found at the following link:
China's already got the world's largest telecoms equipment maker in Huawei. Now, Lenovo? ;-)