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MANAGEMENT’S DISCUSSION & ANALYSIS
2010/11 Annual Report Lenovo Group Limited
20
Idea Product Group
Unit shipments of
the Idea Product
Group grew 29.3
percent year-on-
year for the fiscal
year.
During the fiscal year,
Lenovo launched a
number of innovative
notebook PCs including its first 3D multi-media notebook PC,
the IdeaPad Y560d. The Group also introduced the world’s
first 12.5-inch ultraportable consumer notebook PC, IdeaPad
U260, featuring a magnesium-aluminum alloy metal cover,
leather-patterned palm rest and glass touchpad. Lenovo
also introduced a number of popular desktop PCs, including
IdeaCentre A700 All-in-One, a stylish multi-media consumer
desktop PC and the IdeaCentre B305 All-in-One for more
mainstream performance.
Notebook and Desktop Products
Lenovo also achieved balanced unit shipments growth and
market share gains for both notebook and desktop PCs during
the fiscal year. Despite slowing demand in the entry level
consumer notebook PC market, the Group’s notebook PC
unit shipments growth remained solid at 30.2 percent year-
on-year – about three times the worldwide growth rate in this
product segment. As a result, Lenovo’s worldwide market
share in notebook PC increased by 1.5 percentage-point year-
on-year, to 10.1 percent, according to industry estimates. This
performance helped to move Lenovo from fifth to fourth place
among worldwide notebook PC companies.
In the desktop PC segment, Lenovo benefited from the
recovery in commercial PC demand, as well as outstanding
sales performance of its stylish All-in-One consumer desktop
PC. The Group’s desktop PC unit shipments grew 25.5
percent year-on-year, about seven times of the growth of the
overall worldwide desktop PC market. As a result, Lenovo’s
worldwide market share in desktop PC increased by 1.8
percentage-point year-on-year, to 10.4 percent, and the Group
remained the world’s third largest desktop PC company,
according to industry estimates.
Mobile Products
Sales of mobile products accounted for 3.7 percent of the
Group’s total sales and as stated, Lenovo’s mobile business
unit shipments grew 47.4 percent year-on-year compared to its
own performance in the previous fiscal year. Lenovo’s mobile
products were mainly sold in China and its market share in
China’s mobile handset market increased by 0.7 percentage-
point year-on-year, to 4.7 percent.
Lenovo launched its LePhone smartphone in May 2010
in China and has already set up partnerships with two of
the country’s top mobile carriers, China Unicom and China
Telecom. LePhone is a sleek and powerful Android smartphone
that combines rich services, easy access to applications, and
robust media in a fun to use touch screen handheld, designed
for Chinese consumers that love style and functionality in their
mobile phones.
In addition, Lenovo launched its first tablet product, LePad, in
March 2011 in China and it is the first major launch since the
formation of the MIDH business group. LePad comes with
an abundance of preloaded Chinese applications for work
Ultraportable consumer notebook PC ldeaPad U260
Lenovo launched its first tablet product, LePad, in China
and entertainment, and all are ready for use straight out of the
box. LePad is also equipped with outstanding hardware that
enhances the user experience.