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2010/11 Annual Report Lenovo Group Limited 19
execution has shown good progress, particularly in new partner
recruitment and increases in share of wallet with existing key
partners.
Operating profit in Mature Markets was US$78 million during
the fiscal year, against an operating loss of US$65 million
recorded in the previous fiscal year. The Group’s operating
profit continued to show improvement in every quarter during
the fiscal year. Mature Markets’ operating margin was 1.0
percent for the fiscal year and reached 1.9 percent in the fiscal
quarter four.
PERFORMANCE OF PRODUCT GROUPS
During the fiscal year 2010/11, Lenovo achieved strong and
balanced unit shipments growth in both commercial and
consumer PC products. The performance of the Think Product
Group, which mainly targets commercial customers, benefited
from a recovery of corporate PC demand, while the Idea
Product Group, which primarily focuses on the consumer and
entry SMB products, was propelled by continued strong growth
of the consumer PC segment in China and other emerging
markets. According to industry estimates, Lenovo’s market
share in the worldwide commercial PC market increased by 2.1
percentage-point year-on-year to 14.3 percent during the fiscal
year, while its worldwide consumer PC market share increased
by 1.2 percentage-point year-on-year to 6.8 percent.
In January 2011, Lenovo announced that it had established
the new MIDH business group, to fully capitalize on upcoming
opportunities by leveraging its leadership in PC area. MIDH
Group is responsible for creating mobile internet-focused
devices, including tablet products and smartphones, as well
as devices for new categories like cloud computing, smart
TV and the digital home. It is also responsible for developing
services and applications that will fuel these next generation
convergence devices.
At the International Consumer Electronics Show (CES) in Las
Vegas in January 2011, Lenovo announced several awards
winning Think and Idea branded products that attracted positive
industry recognition.
Think Product Group
Unit shipments of the Think Product Group grew 27.6 percent
year-on-year for the fiscal year. In October 2010, Lenovo
announced that it had sold its 60 millionth ThinkPad, a milestone
achievement for an iconic product responsible for many industry
firsts.
Lenovo offers a wide range of commercial desktops to
businesses of all sizes that feature cutting-edge technology,
customer-centric innovation and powerful productivity features.
Lenovo’s ThinkCentre A70z All-in-One and M70e are ideal
for value-oriented medium to large businesses that want a
full-featured PC. Lenovo also offers the ThinkCentre M90z -
the industry’s first large business-focused 23-inch All-in-One
desktop that blends strong performance and IT features with
sophisticated style and design.
At the CES, Lenovo announced several award winning, Think-
branded products such as ThinkPad X120e, targeting at SMB.
In March 2011, the Group announced the next generation
of its best-selling ultraportable notebook PC, ThinkPad
X220. It provides mobile business professionals with the full
performance and usability found in larger notebook PCs, but in
a light, ultraportable design.
Lenovo’s showcase at the CES 2011
ThinkPad X220 notebook PC