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MANAGEMENT’S DISCUSSION & ANALYSIS
18 Lenovo Group Limited • Annual Report 2007/08
Intel® Centrino® Pro processor technology, combine
cutting-edge and easy-to-use technologies such as facial
recognition, Dolby® Home Theatre surround sound and
dedicated gaming controls. They also make a bold design
statement with frameless screens, touch-sensitive control
surfaces and unique textures. The 11-inch IdeaPad U110
won three “Best of Show” awards and earned very positive
product reviews.
Desktop Computers: Desktop computers accounted
for approximately 41 percent of Lenovo’s total sales
during the 2007/08 fiscal year. By consolidating desktop
product platforms to reduce complexity and strengthen
cost efficiency, Lenovo’s desktop business realized
significantly improved competitiveness and profitability in
the worldwide market. The Group’s desktop computer
shipments increased 13 percent year-on-year while the
overall market grew by just 4 percent. Lenovo increased its
share of the worldwide desktop computer market to 7.7
percent and continued to command the number one
position in China with 27 percent share for the year ended
March 31, 2008.
The better performance during the 2007/08 fiscal year was
attributable to Lenovo’s continuous efforts to drive
operational efficiencies and roll out competitive desktop
computer products. Lenovo streamlined its product launch
process and simplified its product line to further reduce
operational complexity. With these efforts, Lenovo was able
to further reduce the number of machine models which, in
turn, helped reduce cost and enhance serviceability,
leading to greater customer satisfaction.
Lenovo continues to lead China’s notebook market and
accounted for approximately 31 percent of the market with
its tailored features for various customer segments. During
the 2007/08 fiscal year, the Group further capitalized on its
position as an Olympic worldwide sponsor by launching
Tianyi F21, the “Cloud of Promise”-themed, and Tianyi F41
“Snow Mountain” series notebook computers. Like the
“Cloud of Promise” Olympic Torch on which the design is
based, Tianyi F21 notebooks are characterized by striking
swirls of regal red against a pure silver base color, a
contrast representative of the traditional Chinese values of
balance and harmony.
During the fiscal year, ThinkPad continued to demonstrate
leadership in the notebook category through a number of
highly successful product launches. Lenovo introduced its
strongest, coolest and quietest ever ThinkPad lineup,
based on Intel® Centrino® Pro processor platform, with
great success. Selected models are equipped with
ThinkPad’s exclusive Top Cover Roll Cage for excellent
durability, improved cooling systems, enhanced wireless
connectivity with Ultra Connect II and longer battery life
through the Battery Stretch control option. The ThinkPad
T61 proved to be the best-selling model and won more
than 40 accolades from the most respected publications in
the world during the year.
At the Consumer Electronics Show 2008, Lenovo’s new
consumer notebook line made its debut with remarkable
results. The IdeaPad Y510, Y710 and U110, powered by
Tianyi F21 – The Cloud of Promise