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China Troubles: Lenovo "Not Immune" To PC Slump

By Oonagh Reidy | Wednesday | 15/01/2014

It has emerged as the worlds No. 1 PC maker, outrunning HP.

But the native Chinese brand, too, has felt the global slowdown in the PC industry, which fell 10% last year, including in its home market, which has been especially "problematic", say analysts. 

Lenovo, enjoyed growth in all regions except the Asia Pacific last quarter (Q4), where it once again took a big hit in China, Gartner said. 

"Lenovo is the dominant PC player in China with the largest market share but is not immune to the overall PC market slowing down there", Lillian Tay, Principal Analyst, Gartner - Consumer Technology, told CN.

"Comparing from a larger base - Lenovo's decline in growth is more acutely felt here (Asia Pacific) and when we compare  performance to other regions." 

But the ThinkPad maker defied the market trend, and grew shares in all other regions, invading the market with new ultramobile PCs and "aggressive advertising", Tay noted.  

AP's PC market fell a massive 10% last quarter to 26.5 million devices (Q4), as consumers continue to embrace smartphones and tablets over desktops and laptops. Globally, demand fell 7%. 

In Q4 2013, the Chinese giant solidified its PC leadership over HP, according to Gartner. The Chinese brand now accounts for almost one in five PCs shipped globally, or 18 percent, V's HP's 16.4%. 

At CES 2014 held last week, Lenovo also showed off some super slick new PCs including the super spec 14" ThinkPad X1 Carbon with gesture and voice control - the lightest Ultrabook in the world, and also launched its first Android desktop, multi mode convertibles MIIX 2 and YOGA 2 in ones. 

Lenovo who recently just began selling consumer tablets at JB Hi-Fi, are proving popular, CN has been told. 

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