Lenovo Now World’s Biggest Maker of Portable PCs

ThinkPad maker Lenovo reported this week that it earned profits of $204 million on revenues of $8.7 billion in the third calendar quarter of 2012. But the big news is that the firm is now the world’s largest maker of portable PCs. And it has its eyes on an even bigger prize: becoming the overall biggest PC maker in the world.

“Lenovo has continued its strong and balanced growth momentum,” Lenovo Chairman and CEO Yang Yuanqing said. “Our global PC market share reached another historic high, moving us closer to our dream of becoming the worldwide PC leader … Lenovo’s overall profitability will continue to improve.”

Lenovo achieved a number of new records in the quarter. It is now the biggest maker of portable computers in the world and the second biggest maker of PCs overall with a record 15.6 percent market share. PC shipments at the firm grew 10.3 percent, healthy double-digit growth for a time period that was challenging for other PC makers. In fact, Lenovo has now grown its market share faster than the other top five PC makers for three straight years.

Perhaps most interesting, Lenovo—which is best known for its highly regarded, business-oriented ThinkPad brand—is now the number-one maker of consumer PCs worldwide. This is a first for the firm, and it sells a line of IdeaPad devices that target this market specifically. A Mobile Internet Digital Home (MIDH) group is selling smart TVs and other devices, as well.

Lenovo is branching out into other areas as part of its effort to embrace the “PC plus” future. It started a line of smartphones that it’s selling in China currently, and is now the number-two maker of such devices there. Lenovo plans to expand sales of the devices to other markets in the coming year.

Lenovo previously announced that it was opening a PC manufacturing facility in North Carolina. This enterprise will create over 100 new manufacturing jobs and is the first step in a plan to bring PC making to strong local markets, giving customers less waiting time on new orders.

Discuss this Article 25

dklippi
on Nov 8, 2012
Understood. Thurrott's just giving info and all you Apple guys take it as some sort of attack. I don't get it.
pthurrott
on Nov 9, 2012
I've not been on a market share "kick" lately. And I'm not implying it's more important than other metrics. I've always written about market share because it's one of the few things we can measure accurately. And it IS important. Not as important as curing cancer, which is about as relevant as the other weird non-market-share arguments made here. Move on. This is ridiculous.
Rijndael
on Nov 9, 2012
No, not an attack against Apple, but an attack against business sense. Paul has been on a market share kick recently, seemingly to claim its the most important metric. Its not. Its a nice to have, but profitability is the most important thing. Its great Lenovo has been able to grab an additional 5% of the entire PC market over the past two years. That is about equivalent to Apple's entire share. Its an impressive feat no doubt. Yet, despite those massive gains in marketshare, its not translating into massive profitability. Lenovo makes less than $15 for each computer it sells based on their overall profits and the estimate number of units sold.
pthurrott
on Nov 8, 2012
This is in fact a great reason why market share matters. It has nothing to do with revenues/profits. Here's the thing: Would *I* rather be in Apple's position or Lenovo's? What's the difference. They're corporations, not people. We can't be in their position. As a user of PCs, Macs, or whatever devices, their respective profits and revenues don't matter to us in the slightest. In fact, one might argue that all Apple does with the profits it makes (beyond nothing) is develop new products that obsolete the ones we now own, and does so at incredible speeds. How does that benefit you? Developers look at market share and usage share to determine which platforms to support. Market share and usage share matter. Users look at what they see in the world--other people with products, advertising, reviews, whatever--and make their own decisions. None of that--none--has anything to do with profits or revenues. It's not that profits or revenues don't matter. It's just that some of you think it's all that matters. Again, that is not true.
Rijndael
on Nov 8, 2012
This is another great example of why market share is not the best metric. By just about any measurement, Lenovo has 2-3 time the market share of Apple for computers, but Apple's profitability dwarfs Lenovo. Would you rather be in Apple's position or Lenovo's? I'll take the superior profitability over market share any day.
Rijndael
on Nov 8, 2012
"They're corporations, not people." Corporations are people my friend. Just a little post election humor ;) "Developers look at market share and usage share to determine which platforms to support. Market share and usage share matter." But nobody develops for Lenovo. They develop for Windows, or Mac OS. :) Either way, Developers will develop where they think they can be profitable. Usually this means where the most users are, but it is not a hard fast rule. OS X has more development than ever despite having a tiny marketshare compared to Windows. Windows Phone has much more development than its tiny marketshare would seem to indicate it would deserve. Android has the largest market share, but not the developer base and app selection that iOS has. Lenovo has 1/6 of the entire market, yet is just percentage points away from losing money. Despite massive market share growth, their profitability is not following at anywhere near the same rate, that is a bad sign. Yes they are selling more, but each unit is less profitable. Amazon is quickly amassing tablet marketshare, but as they have built that up, their profitability has turned into a loss. Profitability is more important than either revenue or market share. You can't survive long if you are not profitable, even if you have good market share and revenue. You can survive for ever with good profitability even if you have small market share and revenue. Any smart CEO would choose to have higher profitability over higher market share. I am not saying that market share and revenue are not important, but they are dwarfed in the end by profitability. Those who trade profitability for revenue and marketshare don't stay around too long. As to users, I am assuming this is a business article since it talks about earning and marketshare, neither matter to end users. Brand does, but that is not directly proportional to either profitability, market share or usage share.
pthurrott
on Nov 9, 2012
I'm tired of explaining this. The conversation is over. I've already made my case. You've raised no new issues.
pthurrott
on Nov 8, 2012
Sadly, Chuck, Lenovo is profitable so comparisons to Palm or Commodore (which made the Amiga) are irrelevant.
dklippi
on Nov 8, 2012
The profit vs market share thing is only relevant to those on the business end of said company. Potential customers don't say, "I'm going to buy a thousand laptops from company x because they're more profitable than company y." Certainly, if company y is circling the drain it will become a factor in the decision matrix, but otherwise it will not. Except for fanboys of course. Things like support, product quality, features, TCO,and standardization come into play for potential buyers. Market share and profitability are interesting only to investors and fanboys.
Rijndael
on Nov 9, 2012
"I've not been on a market share "kick" lately. And I'm not implying it's more important than other metrics." Really? You may want to have a conversation with the guy who wrote this: "And that's this: When it comes to PCs, tablets, smart phones, whatever; market share matters. In fact, it matters more than any other metric you care to name." - http://winsupersite.com/blog/supersite-blog-39/commentary/market-share-matters-140372 "I've always written about market share because it's one of the few things we can measure accurately." Are you claiming that its easier to measure market share more accurately than profitability and revenue? Because companies publish actual data about profitability and revenue, whereas market share is estimated by analysts. Are you also claiming that when comparing business metrics, curing cancer is just a relevant as profitability? Honestly, what is ridiculous is your response. It's fine to write about market share, but its only one metric that should be used, and its not the most important one. Its great that Lenovo has done well with their market share, but that is only part of the story. All I am saying is that simply touting growth in market share does not tell the whole story, whether its Lenovo, or Amazon, or Android, etc.
dklippi
on Nov 8, 2012
I hope they release a WP8 with landscape keyboard. Nokia, Samsung, and HTC have let me down so far. I have only praise for Lenovo laptops and hope their phones are just as good.
Rijndael
on Nov 8, 2012
@slipslop I agree that most users don't care about these things. However, since this article is about market share and quarterly earnings, it appears to be directed towards the business side, not the user or technology side. Thus the discussion about profitability, revenue, share, etc.
chuckb84
on Nov 8, 2012
Wow, Rijndael, nice rebuttal! That's says just about everything that needs to be said. Just one more thing: "As a user of PCs, Macs, or whatever devices, their respective profits and revenues don't matter to us in the slightest." I'm sure Palm users (or Amiga users) are perfectly content that the parent companies went bankrupt since profits and revenues don't matter to them in the slightest. Apple teetered on the brink, so anyone who was a Mac user in those days will tell you profits DO matter, in fact more than anything else, because you don't have the product or the company without them.
hawg16
on Nov 8, 2012
Where does this article mention Apple? We use Lenovo business products at work. They're pretty solid. However, the consumer line we had in here (L series) were downright awful.

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