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2011/12 Annual Report Lenovo Group Limited 17
PERFORMANCE OF PRODUCT GROUPS
During the fiscal year 2011/12, Lenovo achieved strong
and balanced unit shipments growth in both commercial
and consumer PC products, as well as in both desktop and
notebook PC products. The MIDH Group also made good
progress in its first full year since being established. It has
rolled out a wide range of smartphones, feature phones
and tablets, and Smart TV, which will be launched later this
year.
Lenovo is committed to and investing in innovation that
differentiates its products. At the International Consumer
Electronics Show (CES) in Las Vegas in January 2012,
Lenovo won a record 23 major awards, more than our
top 5 competitors combined, demonstrating the industry’s
recognition of the outstanding quality, design and
functionality of the Group’s products.
Think Product Group
The performance of the Think Product Group, which
mainly targets commercial customers, benefited from solid
corporate PC demand. The Group leveraged its unique,
dual-business model which serves global, large enterprise
customers through its relationship model, as well as SMB
business through its Transaction Model. According to
industry estimates, Lenovo’s commercial PC unit shipments
grew 26 percent year-on-year and its market share in
the worldwide commercial PC market increased by 3.0
percentage point year-on-year to 16.8 percent during the
fiscal year.
Leveraging its unique strength in commercial business,
Lenovo continued to benefit from solid corporate PC
demand during the year. At the same time, the Group
increased its presence in small-to-medium business (SMB)
with encouraging growth through its strong performance
in Transaction Model and execution of its channel
strategy. Lenovo also expanded its footprint in consumer
markets through expanding retail presence, supported by
investments in branding to assert the Group’s consumer
image.
The strong growth in the market was a result of successes
across all regions. The Group achieved unit shipment
growth of 30 percent year-on-year in North America and
recorded historical high market share of 7.1 percent in the
region. During the fiscal year, the Group also successfully
completed the business combination of NEC Joint Venture
and Medion. These two entities helped improve the Group’s
already good performance in Japan and Western Europe.
The Group’s unit shipment grew 37 percent year-on-year
and recorded market share of 7.8 percent in Western
Europe; and its unit shipments in Japan also surged 237
percent year-on-year with market share of 20.6 percent for
the fiscal year 2011/12.
Operating profit in Mature Markets was US$354 million
during the fiscal year, against US$134 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 2.9
percent for the fiscal year, against 1.7 percent last year.
LENOVO MARKET SHARE BY
MATURE MARKET REGION IN FY12
MM
NA
WE
Japan
ANZ 7.3% (-0.2)
20.6% (+14.3)
7.8% (+2.7)
7.1% (+1.8)
8.7% (+3.3)
REVENUE BY PRODUCT IN FY12
Desktop
Notebook
Others
MIDH
5%
5%
33%
57%