China’s Lenovo Aims to Lead in World PC Market, CEO Says
Lenovo Group Ltd. (992) aims to become the world’s biggest maker of personal-computers after it overtook Dell Inc. to rank second in the industry last quarter, Chief Executive Officer Yang Yuanqing said.
“We will continue to outgrow the market,” Yang said in a phone interview from Beijing today. Demand from Lenovo’s corporate clients in the U.S. and Europe is “very strong,” helping the Chinese company weather a weakness in the consumer division, he said.
Lenovo acquired control of Medion AG and the PC division of NEC Corp. last quarter to expand in Europe and Japan, as the maker of ThinkPad laptops also bolstered sales in the U.S. and China. The Chinese company ranks behind only Hewlett-Packard Co. (HPQ) among PC makers globally, after shipments rose 25 percent last quarter, helped by “aggressive marketing,” researcher Gartner Inc. said today.
“If we can do the price cuts, it’s because we have more efficient operations, and have more competitive products,” Yang said. “It doesn’t mean we are sacrificing gross profit.”
Lenovo shares rose 2.3 percent to HK$5.39 in Hong Kong trading today, the highest closing price since Dec. 10. The stock has gained 8.2 percent this year, compared with a 19 percent drop in the city’s benchmark Hang Seng Index.
Yang said Lenovo will consider making more acquisitions to expand, and declined to discuss specific targets.
Lenovo increased its share of the global PC market to 13.5 percent last quarter from 11.1 percent a year earlier, overtaking Dell, whose market share fell to 11.6 percent from 12.2 percent, according to Gartner. Hewlett-Packard rose to 17.7 percent from 17.3 percent, the research company said.
The Chinese company aims to become the leader in the world PC market, Yang said without specifying a timeframe.
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