Lenovo triples South African market share

Electronics manufacturer Lenovo has grown worldwide at “ten times the market” of the PC industry since 2009‚ and has mirrored this performance in SA where it has tripled its market share in three years‚ according to Lenovo general manager in SA‚ David Drummond.

Lenovo’s PC business has quickly risen to become the second biggest PC producer worldwide‚ behind Hewlett-Packard (HP). The Chinese computer maker’s market share is now 14% compared to HP’s 16.5%‚ Drummond said.

Following on from group’s dominant market share in China and Japan‚ the brand was rapidly growing in Africa and other emerging markets‚ he said‚ adding that the group’s focus on sustainable growth and maintaining the strong trajectory could see it become the world leader.

In SA‚ the company had focused on products targeted at large businesses‚ banks and government institutions‚ and a “dedicated range” targeted at small- and medium-sized organisations.

Consumer demand for the company’s PCs in SA has also grown quickly.
A couple of years ago‚ you wouldn’t have seen Lenovo in stores‚ but now they are everywhere‚” Drummond said‚ adding that 75‚000 units were being sold every quarter in the country.

From its market share in SA of between 4% and 5% in 2009‚ the company now enjoyed a share of the industry of between 10% and 12.5%‚ Drummond said.
Growth has been spectacular in SA‚” he said.

In 2005‚ Lenovo acquired IBM’s PC division‚ and Drummond said that the company had retained many IBM customers‚ which had helped drive its strong market share.

In 2007‚ Lenovo formed a PC joint venture with Japan’s leading IT company‚ NEC. The new company was named Lenovo NEC‚ with Lenovo holding a 51% stake in the group.

Drummond said that this “showed the boldness of Lenovo‚ to go into Japan and buy their number one brand”.

He said that the humbleness of the company’s beginnings and the “down to earth” nature of its leaders was a main contributor to its success. “Lenovo products were once delivered on the back of bicycles‚” he added.

On May 23‚ the group reported that it had begun 2011 as the world’s fourth-largest PC vendor and ended the year in second place.

It reported record full-year sales of US$29.6 billion‚ and a record full-year pre-tax income of $582 million‚ an increase of 63% year on year.

Yang Yuanqing‚ group chairman and CEO‚ said: “We furthered our leadership position in the global emerging markets‚ in which Lenovo already achieved double-digit market share in 15 markets and became number one in India.
With the emergence of multiple devices such as smartphones‚ tablets and smart TV‚ our industry is entering the ’PC plus’ era. Lenovo is focused on leading the PC industry‚ and building upon that leadership in the PC plus era.”

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Lenovo triples South African market share