Lenovo’s rebound: World’s No. 4 PC maker is surging except in U.S.

Updated Oct. 15, 2009 at 2:08 p.m.

Lenovo’s rebound: World’s No. 4 PC maker is surging except in U.S.

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Note: The Skinny blog is written by Rick Smith, editor and co-founder of Local Tech Wire and business editor of WRAL.com.

MORRISVILLE, N.C. – Here’s a tip of the hat to the international workforce and leaders of Lenovo.

Sales are growing; market share is improving. From the headquarters in Morrisville to the operations in Beijing to the R&D labs in Yamato, Japan, some people must be doing some things smartly because it appears Lenovo is back in growth mode.

Overall PC shipments were up some 2 percent for the third quarter compared to a year ago. But get this – Lenovo grew 18 percent according to analysis firm IDC and 16 percent based on IDC rival Gartner.

The Skinny has written some tough stories about Lenovo, from censorship in China to layoffs and its management shakeup earlier this year. The good news has been covered, too, from new products to local philanthropic efforts. But to not write something positive about what’s happening at the world’s No. 4 PC maker would simply be unfair. (Check out the sample list of blogs and stories listed with this column that have been published over the past year.)

After replacing CEO William Amelio with former Chairman Yang Yuanqing and the return of co-founder Liu Chuanzhi to the chairman’s seat, Lenovo shifted attention to its homeland of China and sought to capitalize on Chinese government incentive efforts there. The company also continues to roll out a wide range of products from low-cost netbooks to elaborate high-end laptops (some with touch screens; some with two screens) and while seeking to consumer sales. Its new line of "digital lifestyle" products could be a big hit such as the thin-and-small "nettop."

Bottom line: Its PC shipments are surging worldwide, with the notable exception of the U.S., according to the latest industry stats.

Here’s what IDC said in its snapshot about Lenovo:

“Lenovo capitalized on resurgent demand in APeJ [Asia Pacific except Japan], benefiting from government stimulus programs and successfully growing both its Commercial and Consumer shipments. The vendor also improved in other regions, with resulting market share gains worldwide. The company saw strong gains in Japan and EMEA [Europe, Middle East, Asia] while a slight decline was reported in the U.S.”

That’s a pretty good report card.

Of course, booming sales in China had to help Lenovo where it is dominant. Gartner estimates that China’s PC market grew an astonishing 28.5 percent in the quarter.

Last quarter, IDC said about Lenovo: "Lenovo's renewed focus on Notebooks and emerging regions produced positive growth following declines in the past two quarters.” Lenovo’s share was 8.7 percent (IDC) and 8.4 (Gartner).

As Dell’s share goes down, Lenovo closes in

While Dell sales slump, market share drops (now No. 3 behind Taiwan-based Acer), announces the closure of its huge PC plant in Winston-Salem and buys Perot Systems to move away from the PC business, Lenovo surges.

According to IDC, Lenovo shipped nearly 7 million machines in the quarter, up 18 percent from a year ago.

Market share surged to 8.9 percent from 7.7 percent.

If trends continue, and if Lenovo can find some way to break through in the U.S. market, the No. 4 company could catch No. 3. Dell’s market share is down to 12.7 percent from 14.2 percent in 12 months, and it shipped 8.4 percent fewer machines.

Gartner, meanwhile, says Lenovo shipped 6.9 million machines, up 16 percent from 2008, and pegs Lenovo’s market share at 8.5 percent, up from 7.4 percent.

(By the way, in the interest of full disclosure, The Skinny recently bought a Lenovo S10 netbook. It is one sweet machine.))

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Tags: Lenovo, PC industry

The Skinny

WRAL Local Tech Wire Publisher and Editor Rick Smith dishes out tidbits from the local technology sector. Read more articles…

Local Tech Wire