Lenovo's global push fails to lift demand

Lenovo Group's international expansion into the consumer personal computer market last year was a failure, as the company's shipments in the traditional fourth-quarter buying season fell for the first time since 2006, analysts said.

'Lenovo's struggles reflected the softening worldwide economy,' said Loren Loverde, a program director at research firm International Data Corp (IDC).

Following six years of growth, the personal computer industry saw the economic crisis hold back demand in the fourth quarter, when global shipment growth was almost flat - up 0.4 per cent year on year - to 77.3 million units, according to preliminary data from IDC's worldwide quarterly tracker programme.

It estimated Lenovo posted a negative 4.8 per cent growth year on year in the quarter to December on shipments of about 5.5 million units.

Market analyst Gartner offered a slightly different but still unflattering estimate of negative 4.5 per cent growth for the world's fourth-largest personal computer supplier.

Gartner also provided the personal computer industry a marginally bullish fourth-quarter data of 1.1 per cent growth on shipments of 78.1 million units, but described it as 'the worst growth rate since 2002'.

Both IDC and Gartner concluded that Lenovo's belated release last year of consumer laptop and desktop personal computers for the international market - under the IdeaPad and IdeaCentre brands, respectively - failed to boost demand and its market share.