In developing countries like India and China a majority of desktop purchases are unbranded locally assembled products. Not the case with Laptops though!. In spite of this if Lenovo has made it to top it is not because it is more local than Global for the Chinese people but its products are reasonalbly priced compared to HP and Dell. Even here in India when I purchase a laptop for my daughter , I weighed all the options -HP, Dell, Sony, Acer before arriving at the decision to buy Lenovo because of the beteer price/performance ratio and ofcourse the IBM name-tag in its background.
I would completely agree with you Bolaji, in fact when I was buying my most recent laptop this spring I had only a few options that fit my bill without going over what I wanted to spend. I ended up going with another HP since I could get the much larger screen and features for a cheaper price. In fact I had completely forgotten that Lenovo took over IBM's business since it had been almost 6 years since that happened. I think IBM's ties definitely help Lenovo when it comes to the West.
Jbond, Hewlett-Packard certainly scored a goal against itself with the wrangling over whether it should exit the PC market recently. While the company was publicly holding what should have been an internal debate on its future in the PC business, enterprises were actively looking for other vendors and Lenovo fits the bill. One of the things Lenovo has going for it is the old but still very valuable association with IBM. When many people in the West think about Lenovo, they remember it bought IBM's PC division and so, the Chinese company's business can't "be that bad." Right? Yes.
It would not surprise me if Lenovo hit #1 by the end of 2012. HP seemed to shoot themselves in the foot and Dell has been losing significant ground lately. I believe many companies have "home field" advantage as long as their product meets peoples needs. Regardless of global sales, many consumers would rather buy something thats "local".
For Lenova, China is a home market for them and I think government is also promoting Chinese products. More over due to high population market is also very big. I don’t think the case is same foe Dell and HP. Both are US companies and they have to struggle well to find a market in China.
Thanks for breaking out those revenue figures. They were eye-opening. The global companies I am most familiar with, Arrow and Avnet, have been able to balance their revenue by thirds, with equal shares in all regions, depending on how each market is doing. They are selling someone's elses branded products--Intel, AMD etc.,--rather than the end-product (HP, Lenovo). Not sure if that makes a difference, just a thought...
This is a little nitpicky, but Lenovo isn't exactly a "Chinese company." I mean, they were founded in Hong Kong and a big part of the reason they're as big as they are is because of the IBM PC acquisition, as you mentioned.
It perhaps isn't the best example.
I'm not surprised Lenovo is ahead of Dell because -- for one thing -- Lenovo's laptops are very successful and people tend to buy new laptops at a faster rate than desktops, which is something Dell obviously does well selling.
I sort of wonder how much longer "global company" will be a differentiator anyway. Even small companies and individuals are doing more and more business overseas, as the internet makes geographic barriers much less important.
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