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Lenovo aims to expand PC market share
(AP)
Updated: 2005-09-28 21:00

Lenovo the world's third-largest maker of personal computers, aims to expand its share of China's fiercely competitive PC market to 35 percent by the end of 2005, a senior executive said on Wednesday.


Lenovo Chairman Yuanqing Yang (L) and Vice President of Marketing Philippe Davy in New York, September 13 2005. Lenovo, the world's third-largest maker of personal computers, aims to expand its share of China's fiercely competitive PC market to 35 percent by the end of 2005, a senior executive said on Wednesday. [Reuters]

China's biggest PC vendor, which bought IBM's struggling PC business for $1.25 billion this year, controlled 32 percent of the world's number-two PC market at the end of June, said Liu Jun, Lenovo's chief operating officer for China.

Lenovo's own-brand business accounted for most of that, with about a 28 percent share, while the remainder came from IBM's former business in China.

Now, the expanded PC titan aims to outpace domestic market growth, Liu said, helping it to compete with Dell (Nasdaq:DELL - news) and Hewlett-Packard Co. in grabbing market share from smaller Chinese players.

"In China, in the past, we had a very rapid growth rate," Liu told reporters on the sidelines of an industry forum in Shanghai.

"Next we are (going to) extend the gap. I believe we can achieve 30 to 35 percent market share. I have the confidence we can do this by the end of the year," he said, adding that the 30 percent goal would be for just Lenovo brand business, while 35 percent would include the IBM business as well.

Lenovo, HP and Dell have been slugging it out in China's cut-throat PC arena, expanding their share of the market at the expense of smaller, generic players, analysts said.

Liu said Lenovo also hopes to close the gap against HP and Dell in the broader global market.
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