Early this week, in an interview with Techcircle.in, Amar Babu, MD, Lenovo India had talked about Lenovo's plans to overtake Dell in the worldwide PC market; that has finally happened. The company has overtaken Dell to become the second-largest PC vendor in the worldwide market for the first time, according to the research firm Gartner.
The company's expansion was boosted in part by the joint venture with NEC (Nippon Electric Company) in Japan. However, its aggressive marketing to both the professional and consumer PC markets accelerated its shipment volume. Lenovo performed strongly in both the professional and consumer markets and took advantage of HP's strategic issues and Dell's inability to match Lenovo's prices in the professional market.
"Lenovo has surpassed two competitors to capture the No. 2 spot in worldwide PCs over the span of just two quarters. This is the highest rank Lenovo has achieved in worldwide PC sales and given the current competitive environment, positions the company as a strong challenger to ultimately become the global market leader," said Yuanqing Yang, CEO, Lenovo.
HP continued its reign as the No.1 vendor based on global PC shipments and its market share reached 17.7 per cent in the third quarter of 2011 despite the company's announcement in the middle of Q2, 2011 about the potential spinoff of its PC business.
Dell on the other hand struggled as shipments declined 7.2 per cent in the third quarter of 2011. The company's performance was below the industry average in most regions, as the company faced intensified competition in the professional space, where it has been traditionally strong.
"Dell's issue has been balancing profitability and market share gain, a difficult task in a PC industry where high volumes and low margins are the norm," said Mikako Kitagawa, principal analyst at Gartner.
The other big players in the worldwide market included Acer at No. 4 and Asus at No. 5.
Also, the worldwide PC shipments totalled 91.8 million units in the third quarter of 2011, a 3.2 percent increase from the third quarter of 2010.
In Asia/Pacific, PC shipments reached 31.8 million units in the third quarter of 2011, a 6 percent increase from the same period last year. The vendors in the region continued to stimulate demand aggressively with promotions and prices.