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2009/10 Annual Report Lenovo Group Limited
16
Mobile’s performance in the Group’s results for the year
ended March 31, 2010.
PERFORMANCE OF GEOGRAPHIES
During the year ended March 31, 2010, Lenovo
saw year-on-year improvements in its geographic
performance as compared to the previous fiscal year,
benefiting from the focus on its strategic priorities
and its strong execution. The Group’s China business
delivered solid profits while losses incurred in Mature
Markets and Emerging Markets (excluding China) were
reduced significantly.
China
China accounted for approximately 47 percent of
the Group’s total sales. China’s economic stimulus
packages and its rural subsidy program for PCs aided
in driving demand in both commercial and consumer
segments, especially for consumer notebooks. With
growth momentum further improving in the second half
of the year, the China PC market posted 31.9 percent
year-on-year growth in unit shipments. Lenovo further
expanded its leadership with 37.4 percent year-on-year
increase in unit shipments by: focusing on capturing
high growth opportunities in the rural market and
government stimulus projects, refining the small-and-
medium-sized business (SMB) model, strengthening
cross-selling capability in the large enterprise segment,
and enhancing storefront competitiveness. The Group’s
market share rose 1.2 percentage points year-on-
year to 30.0 percent based on preliminary industry
estimates, and achieved a historic high market share
at 33.4 percent in its traditional peak season at the
quarter’s end in December.
As noted, Lenovo completed its reacquisition of
Lenovo Mobile at the end of January after shareholders
approved the transaction on January 22, 2010. As a
result, China included approximately two months of
Lenovo Mobile contribution for the fiscal year.
Emerging Markets (excluding China)
Emerging Markets (excluding China) accounted
for approximately 16 percent of the Group’s total
sales. Economic growth in emerging and developing
economies was affected by the financial crisis. As a
result, growth in the PC markets in certain emerging
markets declined substantially in the first half of the
MANAGEMENT’S DISCUSSION & ANALYSIS
ThinkPad Edge Notebook