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Lenovo's tablet shipments grow in china with low-priced products - Chemical Mixing Machine Manufact by airbru airbru





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Lenovo's tablet shipments grow in china with low-priced products - Chemical Mixing Machine Manufact by
Article Posted: 02/17/2013
Article Views: 67
Articles Written: 1137
Word Count: 444
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Lenovo's tablet shipments grow in china with low-priced products - Chemical Mixing Machine Manufact


 
Business,Business News,Business Opportunities
PC maker Lenovo has used a basement price strategy in China tobecome the country's second largest tablet vendor, coming ahead ofrivals offering Android-based products, according to research firmIDC. In this year's first quarter, Lenovo had a 17.2 percent marketshare of China's tablet market, according to IDC, with Samsungtrailing far behind with a 3.8 percent share. Among Android-basedtablets sold in the country during the quarter, Lenovo's reached a48.2 percent share. The market share of the PC maker's tablets is still far behind that of Apple's iPad, which shipped almost 1.2 million units inChina in comparison to Lenovo's 316,000 units at the end of thequarter.

But on Wednesday, Lenovo CEO Yang Yuanqing said during anearnings conference he wanted the company tablet's market share inthe country to reach more than 20 percent in the new fiscal year. Lenovo's tablet shipments have risen in part because the companyused a low-price strategy similar to Amazon's Kindle Fire, said IDCanalyst Dickie Chang. For instance, one version of Lenovo's LePadA1 comes with a 7-inch touchscreen, has only 2GB of storage, and ispriced at 1,000 yuan (US$158). Lenovo also offers another versionof the LePad A1 with 16GB of storage for 1399 yuan ($221). China is also Lenovo's home turf, where the company has remainedthe top PC vendor in the country for over a decade.

The companybenefits from a strong brand image, along with an extensive saleschannel that can reach China's smaller cities, Chang said. "Lenovo is the number one PC brand in the country and people trustthe brand," Chang said. "People who haven't had a tablet before,they will start with a cheap one, and Lenovo's tablets are pricedvery reasonably." In contrast, Apple's iPad starts at 2,988 yuan in China. Thecompany is also in the midst of a trademark dispute over the iPad name in the country, and has yet to begin sellingthe newest version of its tablet in China.

Chang, however, cautioned that IDC's data only accounts forofficial tablet sales in the country. If the large number of iPadssold through China's unofficial gray market are included, Apple'sshare of tablet shipments will be higher. China began outpacing the U.S. last year to become the world'slargest PC market, according to IDC. But the country's tabletmarket is still fall far behind the U.S.

For this past firstquarter, China saw 1.8 million official tablet shipments, accordingto IDC. The U.S. in contrast had 6.8 million tablet shipments,about 64 percent of which were Apple's iPads.

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