Lenovo 2009 Annual Report Download - page 20

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MANAGEMENT’S DISCUSSION & ANALYSIS
2008/09 Annual Report Lenovo Group Limited
18
The Group’s performance in this geography was
impacted by execution issues in both India and Japan,
which offset the higher growth achieved in the rest of
the geography in the first half of the year. Even though
Lenovo achieved the number one position in the
education segment in Australia and New Zealand in the
2008/09 fiscal year, it saw its PC shipments in large
enterprise and high-end segments under great pressure
in the second half of the year when the market showed
marked slowdown with the widespread economic crisis.
In the 2008/09 fiscal year, the Group implemented
several actions to improve its business operations
in India. However, the Group had to scale back its
business in the Indian PC market which faced severe
challenges with market demand due to both domestic
issues and the global economic crisis. In Japan, Lenovo
also met with significant challenges due to the weakness
in the commercial market. Nevertheless, the Group was
encouraged with the enthusiastic market response to its
launch of IdeaPad netbooks in the fiscal fourth quarter.
PERFORMANCE OF PRODUCT GROUPS
Lenovo takes pride in its innovation leadership in the
PC industry. During the 2008/09 fiscal year, the Group
continued to lead the industry in introducing new key
technologies and product platforms. More importantly,
it successfully launched a number of new models to
address the growth in SMB and consumers markets.
Notebook Computers
Notebook computers were the primary source of
growth for the worldwide PC market in the 2008/09
fiscal year, mainly driven by consumer demand and
the shift to lower price points. Lenovo’s notebook
ThinkPad R Series notebook