Lenovo is up and ready to dominate the Chinese tablet market with its growing business and consumer demand, expecting to gain a 20% share by the end of 2011.
Lenovo is hoping to make a permanent niche for itself in the Chinese market while trying to grab a 20% tablet market share in China by the end of 2011. This was the aim set by the Chinese computer maker Lenovo group recently, stating along with this the release of some new products the company has been working on, in the upcoming months. And Lenovo has chosen the right market to extend its business in. Why? Because since the March launch, consumer demand for Lenovo LePad tablet in China has been high, so much so as to cause a supply shortage. CEO of the world’s 4th largest PC maker by shipments, Yang Yuanqing reported, “Although it’s only been in the market for a couple of months, the market response for LePad has been very good.”
Now Lenovo is rumoured to be working on a ThinkPad tablet, which is one of the upcoming product series by the company (wonder what else it has lined up for the Chinese market.) Right now, it seems like Lenovo is slowly working its way around coming neck to neck with Apple in China’s tablet market share competition. And Apple, as we know, has its hands full with market share all over the world with its iPad and iPad 2 launches. The company acquired an 80% share in China’s tablet market in its first quarter this year, solely with its two iPad tablets.
But Lenovo is not lagging behind as the consumer market raises its demand for more Lenovo devices. The company expects a heightened profit in the fourth quarter due to the increase in product sales and orders placed by corporate customers. Analysis conducted recently on Lenovo’s product sales revenue amounts to 46.4% (2010) in China, 35.7% in U.S., Europe and other mature markets and 17.9 % in emerging markets. The company achieved a surprising net income profit from $13 million to $42 million.
Yang predicted that around 15% to 20% of the total PC market will be consumed by tablet demands as more and more user needs focus on a portable computer. Research firm analysis states that by 2011, the tablet sales in the market will hit more than 4.5 million in China. And Lenovo might get to play an influential role in raising the stakes for the Chinese market. The most profitable move by this company was its acquisition of IBM’s PC business in 2005. And since then, Lenovo has progressed in its business with leaps and bounds, reaching out to become a global brand. With a LePad, LePhone and now a ThinkPad (under progress) in its store, obtaining a target of 20% tablet market share in China by the end of the year may not prove to be such a problem for Lenovo.