Urbanisation on mainland China to spur PC market growth, Lenovo says
Economic strategy will provide growth opportunities when vast markets are opened up, PC maker's chief says
Unfazed by the economic slowdown on the mainland, Lenovo is betting on Beijing's aggressive initiatives in urban expansion to provide long-term growth opportunities for personal computers and smart devices.
Lenovo has been keeping an upbeat outlook following its success in unseating Hewlett-Packard as the world's largest personal computer supplier in the second quarter.
I believe urbanisation will help us further increase the overall PC market
Describing Lenovo's prospects on the mainland at its annual general meeting in Hong Kong yesterday, chairman and chief executive Yang Yuanqing said: "I believe urbanisation will help us further increase the overall [domestic] PC market."
Yang admitted that the slowdown on the mainland has affected the company's personal computer business.
But he also emphasised the opportunity presented by the mainland's lower penetration rate of personal computers compared with developed countries.
Urbanisation, the centrepiece of Premier Li Keqiang's economic policies, is expected to allow Lenovo and other personal computer suppliers to reach a vast, largely untapped market on the mainland.
A recent report by Bernstein Research predicted that the vast rural markets would provide steady and higher growth opportunities for Lenovo over the next five years, compared with the mainland's major urban markets.