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Lenovo broadens strategy as market share falls

Lenovo broadens strategy as market share falls

Lenovo's share of the local PC market dropped by 1 per cent year-on-year in Q4 2005, according to the latest figures from IDC.

The Chinese manufacturer purchased IBM's ThinkPad notebook and ThinkCentre desktop business three quarters ago.

Lenovo product strategist, David Nicol, denied the numbers were any cause for concern. He blamed the fall on a significant reduction in corporate and government rollouts but suggested that pipeline would bounce back as the year progressed.

More importantly, he said the launch of new Lenovo 3000 notebooks and desktops on March 1 would help regain share.

The consumer targeted machines would be priced from $999, he said. The desktop model would include an LCD monitor. Desktops will come in two sizes - tower and small form factor - while laptops would include an ultra portable model.

"Is the drop small? Yes, but no vendor ever wants to lose market share," IDC senior hardware analyst, Michael Sager, said.

The launch of new desktops and notebooks in the consumer and small business space could help Lenovo claw back and even grow its market share, he said

"The real sanity test for Lenovo will be to see where it's positioned this time next year," he said.

"By that time, the combined consumer and commercial business will have settled and we'll have a better indicator of its real place in the market."


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