Global Pc Market Fluctuation and Lenovo’s Strategy

Global PC Market Fluctuation and Lenovo’s Strategy

Once in a while after the acquisition of IBM by Lenovo in 2005, Lenovo is currently the second largest PC manufacturer in the world after HP. This major Chinese PC manufacturer has globalized its brand name particularly to the U.S. market. Lenovo should not be able to maintain its market shares without the innovation of its upcoming new products in order to compete with its rivals’ most updated advanced technology. The launching of several portable electronic devices recently from other vendors should be a threat for Lenovo to move forward which focused with PC market in the past. Traveler customers have their new preferences; utilizing with a lighter, and more space-efficient device such as tablets and smartphones. A new global IT culture has transitioned IT industry movements. Both Apple which has its famous I-pad and Samsung that has its Galaxy tab are some cases which Lenovo and IBM should follow up in order to gain its market shares and profitability.

Figure 1: Global smartphone market shares (2006-2011)

As we can see in the figure above, the percentage growth of worldwide smartphone users tends to bloom rapidly for the last 6 years. For example, in 2011, there is a significant 75% growth of mobile device users from 80 million users in 2010 to 145 million users in 2011. This phenomenon indicates that the transition of customer preferences for PC has been transformed deliberately to mobile electronic devices.

Figure 2: Global PC Market Sales (2006-2011)

Source: www.gartner.com

In contrast, the following figure above shows that there is a slightly slow increase of worldwide PC industry in the late 2000s. The PC global sales growth has a declining growth