Lenovo aims to be number one

Lenovo is gunning for the top spot in the region’s PC market, its chairman declared last week.

  • E-Mail
By  Peter Branton Published  October 2, 2005

Lenovo is gunning for the top spot in the region’s PC market, its chairman declared last week. Speaking exclusively to IT Weekly, Yang Yuanqing said that the company will get there by combining the innovation that IBM was renowned for with the operating efficiency that made Lenovo the leading PC company in China. Analysts already ranked the company as the ninth largest PC firm in the world, mainly on the strength of its Chinese PC sales, before its US$1.25 billion buy of IBM’s PC business last year. That deal catapulted Lenovo up the rankings, making it the world’s third largest, after HP and Dell. However Yuanqing said last week that he wants to go even further and that he sees emerging markets, especially the Middle East, as key to achieving that target. “Our key strategy is to cover emerging markets, so it is very important to focus here [on the Middle East] to see how we can generate more growth here,” he said. “We are not new to this region. IBM had already been here for a long time, however we believe there is a big opportunity for us here,” he added. Yuanqing was talking on the first day of Gitex, an event Lenovo has chosen to mark its official debut in the region. His personal presence at the exhibition is a signal of intent to the region of how seriously Lenovo is targeting it. Milko Van Duijl, Lenovo’s general manager for Europe, Middle East and Africa, who also attended the vent, said the company’s strategy of developing under-represented ma-rkets made the region a natural target. “Clearly in the Middle East there are some countries where we have never been active, there are other countries where we believe the growth is phenomenal and we believe they can grow even further. That’s where we see growth for us, we can quadruple the business and more,” he said. In China, Yuanqing won renown for improving Lenovo’s operating efficiency; he believes this will be key to competing with other global players but stressed the importance of innovation as well. “This new company will continue to put technology and innovation as our first priority but we also want this company to be more efficient,” Van Duijl said. “The PC industry has already become an efficiency industry so you cannot survive without that. Our goal though is to do more than survive, we want to be the leader of this industry so we have to look at how we can differentiate ourselves. Key to that will be innovation,” Yuanqing emphasised. Areas where Lenovo is looking to add more innovation include security, with the company looking at biometric sensors for notebook products, and network connectivity, such as its recently announced wireless projector. At Gitex, Lenovo launched its ThinkPad Z-Series of notebooks, the first widescreen multimedia ThinkPads. The launch was made at the same time as the global rollout, another signal of intent for the region. In terms of numbers, Yuanqing said he was looking for twice the average industry growth for the Middle East, with the company looking to retain the enterprise customer base it inherited from IBM and look more to consumer and SMB customers. “The old IBM PC business only focused on large enterprise accounts, so they could only reach 50% of the market, we want to address it all,” he said. Rival companies were cautious about Lenovo’s plans. “We are going to wait until we can see the facts after six or nine months; it is too early to say whether they are doing things right,” said Emanuele Accolla, EMEA vice president at Acer. However, he said he believed Lenovo had actually lost market share in Europe.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code