Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • Mobile
    • Networking
    • PC Hardware

    Lenovo ‘Protect and Attack’ Strategy Paying Off

    By
    Michelle Maisto
    -
    February 9, 2012
    Share
    Facebook
    Twitter
    Linkedin

      Lenovo, the world’s No. 2 PC maker, saw record sales of $8.4 billion during its fiscal 2011 third quarter, which concluded Dec. 31. Growing faster than its top-five ranking peers, it additionally enjoyed global market share of 14 percent€”its highest ever.

      Lenovo, which announced its quarterly results Feb. 9, has been executing a “protect and attack” strategy€”protect its enterprise business and strong base in China, and attack growing segments such as smartphones and tablets. Handily, it helped Lenovo outsell the industry average€”Lenovo PC shipments increased 37 percent, the company said in a statement, while the overall industry struggled to remain flat€”and to work around hard-drive shortages that are hurting competitors.

      Analysts with investment firm Jefferies & Company wrote that third-quarter “revenue and income came in better than market expectations.” Revenue, they added, was driven by strong consumer PC growth of 71 percent year-over-year, while Lenovo’s commercial PC segment grew 21 percent year-over-year.

      On. Jan. 13, Gartner reported that Lenovo had sold nearly 13 million PCs during the quarter€”up from 10.5 million a year earlier€”and “further cemented its place as the No. 2 vendor in global PC shipments.”

      During the quarter, its laptop business brought in sales of $4.5 billion€”an increase of 30 percent year-over-year€”generating 43 percent of its total sales revenue.

      Its growing smartphone division€”which saw shipments increase “20 times year-over-year for the quarter”€”also significantly contributed.

      “We saw strong progress in our Mobile Internet business. During the quarter, Lenovo sold more than 6.5 million phones, and almost half were smartphones,” Lenovo Chairman and CEO Yang Yuanqing said in a statement. “Lenovo’s smartphone market share in China reached double-digit market share in December. We also see strong momentum in our tablet business. All these successes demonstrate that Lenovo has built a strong foundation for the next steps beyond traditional PCs.”

      In China, Lenovo is the No. 2 tablet vendor, and during the third quarter grew its overall market share to a record-high 35.3 percent.

      “In the largest PC market in the world, Lenovo widened the share gap between itself and the company’s main competitors,” according to a company statement, “and continued to outperform the China market, particularly in emerging cities and amongst rural customers.”

      Apple, Nokia and other top brands have aggressive plans for China, noting the unprecedented pace at which its middle class is growing and their appetite for mobile electronics. With such fast-paced growth, a few cultural stumbles along the way seem likely, and it will be interesting to see how the China-based Lenovo can put its home advantage to use.

      The writer Chuck Salter, in a Fast Company article, recently summed up Lenovo by describing it as a company unlike anything we’ve ever seen before, a product of Communist China, influenced by the West, and with customers in 160 countries. He writes:

      In just 30 years, an enterprise launched in the Beijing equivalent of a garage … has blossomed at a pace no one predicted. Lenovo is redefining “Made in China,” producing the industry’s highest-quality machines; it ranked No. 1 in the 2011 Computer Reliability Report, ahead of Apple and HP. And the company’s culture skillfully blends an Eastern way of thinking with the best of Western business, demonstrating innovation and nimbleness that would impress€”and unnerve€”the most skeptical Silicon Valley digerati.

      Avatar
      Michelle Maisto
      Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University, and in her spare time obsesses about food. Her first book, The Gastronomy of Marriage, if forthcoming from Random House in September 2009.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×