Lenovo: Challenger to Leader




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Introduction

Beijing-based multinational technology giant, Lenovo Group Limited (Lenovo), recorded a market share of 16.7 percent in the global personal computer (PC) market in the first quarter (Q1) ended June 30, 2013, emerging as the clear leader in the market, according to both International Data Corporation (IDC) and Gartner Inc. (Gartner). While IDC said that Lenovo had recorded a growth of 15 percent from the Q1 of 2012, Gartner put the growth from Q1 of 2012 at 14.9 percent. Experts said this was the first time that both IDC and Gartner had given the top spot to Lenovo.

Founded in 1984 as Legend Holdings Limited, Lenovo sold computer products of branded PC makers such as Dell Inc. (Dell), Hewlett-Packard (HP), and Compaq Computer Corporation in its initial years.

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Sensing the potential in the lucrative Chinese PC market, the company started selling its own brand of desktop PCs in 1990 and emerged as the leader in the Chinese PC market in 1996. In 2005, the company acquired the PC division of US-based multinational technology giant, International Business Machine (IBM). This gave the Lenovo brand global recognition in addition to making it the third largest PC maker in the world by volume behind HP and Dell. For the financial year (FY) ended March 31, 2013, Lenovo recorded sales of US$ 34 billion, a Year on Year (YoY) increase of 15 percent.

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