Lenovo presents his strategy for beating HP and Samsung
It aspires to conquer the first place
For the third consecutive year, Lenovo has grown more quickly than its four major competitors, at the same time retaining a high profitability. The President of the company, Yang Yuanqing, announced their plans to conquer the lucrative market for tablets and smartphones.
According to Gartner estimates, Chinese manufacturer Lenovo surpassed in October to HP as the world’s leading manufacturer of PCs. For its part, IDC concluded that HP continues in first place, although with minimal advantage. Regardless of both analyses, Lenovo is moving at an unstoppable pace.
The company itself is defined as the world’s largest manufacturer of laptops, with a 16% share of the global market. Lenovo strategy has been to protect the markets where it has a strong presence, mainly the segment of the PCs in China, along with implementing an aggressive strategy in the fastest-growing markets. Lenovo has identified as priority segments of tablets, smartphones and smart-TV in its domestic market China, as also the global market for tablets.
As a natural part of this strategy, Lenovo plans to impose on HP in global PC market and face Samsung in the market for smartphones.
Sales of smartphones brand Lenovo has tripled during the first six months of 2012, compared to the same period in 2011, which illustrates the tremendous growth potential of the Chinese market.
Lenovo turnover increased from 7.8 billion dollars in 2011 to 8.7 billion dollars in the same quarter of the current year, which is equivalent to a growth of 11%. Net profits were $ 162 million in the quarter, against 144 million dollars in the same period in 2011.
An analyst consulted by Bloomberg News expressed optimism for the development that is going to have Lenovo in the segment of smartphones. “Lenovo has better performance better than its competitors in the PC market, which is in the process of contraction”, said the expert.
In this context, it should not surprise that Lenovo initially concentrate its strategy for smartphones in the Chinese market. The growth potential is still very high in that country, where the company already has a consolidated position. Joins this trend of the Chinese consumer to prefer local manufacturers at the moment of choosing their phones.
Lenovo began to dabble in the market for smartphones just two years ago, and currently ranks second. The main actor is Samsung, although the biggest growth corresponds to Lenovo, ZTE and Huawei.
The natural question that arises then is when Lenovo will begin to bet on the world market for smartphones.