Linked by Thom Holwerda on Thu 8th Nov 2012 12:52 UTC
Something truly interesting is currently happening in the PC space. Ask any random internet commenter how the PC market is doing, and I'm pretty sure you're going to get something along the lines of 'everybody but Apple is failing'. Turns out this isn't the case - Lenovo has just become the world's largest PC and laptop vendor, after three years of steady growth in sales and profits. "During the second fiscal quarter, Lenovo's worldwide PC shipments grew 10.3 percent, in a difficult market that was down eight percent year-over-year, the 14th quarter in a row that the company has grown faster than the PC industry as a whole. In this challenging environment, Lenovo achieved its highest-ever worldwide market share of 15.6 percent, gaining share points in every geography, every product category in which it competes, and in every respective customer segment." Very impressive.
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RE: Good units sales - poor profit
by karunko on Thu 8th Nov 2012 22:03
in reply to "Good units sales - poor profit"
Member since:2008-10-28
An operating profit of $206 million on 8.7 billion. Thin margins.
Maybe because they're not fleecing their customers?
Oh, I forgot: we're living the post-PC era, tablets (i.e. iPads) are eating into the sales of PCs in general and laptops in particular, yadda yadda yadda. Either that, or the margins are way too thin, eh?
RT.
RE[2]: Good units sales - poor profit
by Tony Swash on Fri 9th Nov 2012 00:37
in reply to "RE: Good units sales - poor profit"
Member since:2009-08-22
"An operating profit of $206 million on 8.7 billion. Thin margins.
Maybe because they're not fleecing their customers?
Oh, I forgot: we're living the post-PC era, tablets (i.e. iPads) are eating into the sales of PCs in general and laptops in particular, yadda yadda yadda. Either that, or the margins are way too thin, eh?
RT. "
The notion that any company that makes a good profit, and let's be honest here in this context that means Apple, is fleecing the customer is ludicrously childish.
If a company fleeces customers you don't see it's sales increasing above the average market growth rate year after year and you don't see it regularly topping surveys of customer satisfaction.
If you make a high value added and sought after product with a high reputation and as a company create a premium brand that not's fleecing, it's just good business.
RE: Good units sales - poor profit
by Anon on Thu 8th Nov 2012 23:22
in reply to "Good units sales - poor profit"
Member since:2006-01-02
Wow! Only 2% margin! No wonder IBM flogged it off.
Lenovo is in a very vulnerable position should sales plateau or costs increase. Very little room for movement.
No surprise Lenovo takes top PC vendor spot, it's more to do with the competition and PC market as a whole dying, then Lenovo making big strides.
RE: Good units sales - poor profit
by kwan_e on Fri 9th Nov 2012 01:47
in reply to "Good units sales - poor profit"
Member since:2007-02-18
Member since:
2009-08-22
An operating profit of $206 million on 8.7 billion. Thin margins.