Can Lenovo Group Limited (LNVGY) Dominate In The Struggling PC Market?

Page 2 of 2

Growth In Other Areas

While showing strong figures in the “PC Plus” Era, Lenovo is also expanding into the smartphones and tablets business. While HP and Dell are struggling in the PC market, there are only few signs of growth and expansion. On the other hand, Lenovo is already improving its smartphones business, as the company showed profits in China’s smartphone segment.

Also, Lenovo has already launched its smartphones, and both Android and Windows 8 tablets, in several different countries around the world, including India and Russia. Yuanqing believes that Lenovo has showed significant growth in the PC market,  but also “hypergrowth” in the tablets and smartphones segment.


Lenovo’s senior VP and ex-Acer president, Gianfranco Lanci, believes that Lenovo is heading in the right direction, and believes that the company’s 2% to 2.5% profit margin is a success in the PC market. Lanci also said that the company is aiming for a 1% to 1.5% increase of profit margins in 2014.

Bottom Line

Lenovo not only believes that it will have a successful year in the PC market, but also believes that the company will grow further in the mobile phones and tablets industry. We have just entered into the “PC Plus” or “Tablet+Laptop” era, and Lenovo is likely to come out on top with its new and unique devices.

When you look at the market for Windows 8 devices, then Lenovo is clearly looking to dominate the market. Lanci believes that Lenovo is far ahead from competitors, including Dell and HP, in this particular type of industry, with lower prices and innovation being Lenovo’s major strengths.

The article Can Lenovo Dominate In The Struggling PC Market? originally appeared on Fool.com and is written by Yasir Idrees.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2