Lenovo Catches Up to HP

Lenovo Group has revealed that the gap in market share between Hewlett-Packard and the other Chinese company has been reduced to 2 percent, a significant difference from 2010’s 9 percent.

International Data Corp reports that Lenovo reached record sales in the third quarter of last year, as well as a global market share of 14 percent. These developments make the company one of the greatest PC makers by market share.

Lenovo claims its success is linked to its smartphone market.

“We saw strong progress in our Mobile Internet business. During the (third) quarter, Lenovo sold more than 6.5 million phones, and almost half of those were smartphones. Lenovo’s share of the Chinese smartphone market reached double digits in December,” said Lenovo chairman and CEO Yang Yuanqing.

In 2005, Lenovo acquired the US PC division of IBM, and last year it signed on a joint venture with NEC Corp as well.

“For the first time, Lenovo has become the global number one vendor of commercial PCs and consumer desktops, despite the worldwide shortage of hard drives in the past quarter,” Yang continued.

“Because Lenovo maintains a high volume of PC shipments, it has stronger bargaining power with hard drive providers than other companies,” added Wag Jiping of IDC Asia-Pacific.