Lenovo
The Shelf speaks to Mohammed Hilili, GM, Lenovo Gulf, to
understand the company’s market expansion plans
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smartphone supplier and the fastest growing
supplier, with growth of 132%.
Top line and bottom line grew significantly, but
more importantly, profits outgrew revenues and
margin expanded: Q1 revenue was $8.8 billion, up
10% YoY, while profit was $174 million, up 23%.
Lenovo outgrew the overall market for the 17th
quarter in a row in Q1 FY13/14 in a market that
declined 11%YoY. And for the 15th quarter in a row,
Lenovo realized growth in sales and profit.
Further demonstrating balance, Lenovo’s MIDH
revenues – which include smartphone, tablet and
smart TV products – accounted for 14% of revenue
in Q1 FY13/14, up from 7% year over year.
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Hilili, L l Manager
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In a fledging PC industry, Lenovo is bucking
the trend with soaring sales and a leapfrog to
number one in the world for PC shipments. How
are you achieving this?
Our Protect & Attack strategy is proving to be
the right strategy for the mobile and consumer
focused PC Plus era. Lenovo has strong business
momentum with record market share, improved
profitability and a more balanced business. It is our
long-term formula for success.
We continue to protect PCs as a stronghold,
while we rapidly scale innovation to attack
smartphone and tablet markets to become a PC
Plus leader. Current market trends play to Lenovo’s
strengths including the shift from premium to
mainstream products and from mature to emerging
markets, while Lenovo is expanding the focus
beyond market share to driving innovation and PC
Plus leadership.
For the first time ever, Lenovo was named
the number 1 PC supplier in the world by IDC
and Gartner recording its highest-ever
quarterly market share of 16.7% in Q1
FY13/14.
In another first, Lenovo’s
combined shipments of
smartphones and tablets
surpassed PCs
during Q1 FY13/14
according to
IDC, which
ranked Lenovo
the world’s
4th largest
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Indeed, many eyebrows were raised when your
CEO said he still believes PCs are still relevant,
but if the above is anything to go by, he was
right. Tell us more about this ‘PC plus era’, and
how it is influencing your strategy?
Becoming a PC Plus leader is the most critical
challenge for Lenovo since we became a global
company with the IBM PCD acquisition in 2005
and we are well positioned to succeed. First, we
have the innovation and in-house manufacturing
capability to bring new exciting products to market
quickly and efficiently. Second, the market is
shifting from premium to mainstream products.
According to IDC data, mainstream categories are
seeing rapid growth (SP more than 75% year-onyear, Tablet 181%) that far outstrips premium (SP
9.8% year-on-year; Tablet -11.6%).
While the PC market still represents a $200B
opportunity and offers substantial opportunity for
For more information, please write to [email protected]
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