Lenovo 2014 Annual Report Download - page 22

20 Lenovo Group Limited 2013/14 Annual Report
MANAGEMENT’S DISCUSSION & ANALYSIS
Lenovo’s commercial PC unit shipments grew 4 percent
year-on-year, which was a 5-point premium to the market.
Lenovo’s market share in the worldwide commercial
PC market increased by 1 percentage points year-on-
year to 19.7 percent during the fiscal year under review,
according to preliminary industry estimates. During the
fiscal year under review, the Think Business Group, which
mainly targets premium PCs and tablets, and enterprise
solutions, continued to launch innovative models in
commercial devices. These include premium products like
ThinkPad® Yoga, which provides customers with a flip-
and-fold design to perform a 360 degree rotation with its
unique dual-hinge. Customers can have a unique 4-in-1
user experience from one optimized, hybrid/convertible,
leading business-class device. Commercial targeted
products like ThinkPad® T440p, with performance,
efficiency and durability that make it the corporate laptop
workhorse that sets the industry benchmark. Its award
winning keyboard, full HD display and ultra long battery
life also provide customers with better user experience
and functionality.
The Lenovo Business Group, which primarily focuses
on the mainstream/entry PC, smartphones and tablet
products, was propelled by continued strong growth of
the consumer PC segment in EMEA and AG markets to
gain share in consumer business. According to industry
estimates, Lenovo for the first time became number one
in the global consumer PC market for the fiscal year. Its
consumer PC unit shipments grew 6 percent year-on-
year, which was a 19-point premium to the market, and
its market share increased by 2.9 percentage points
year-on-year to 15.7 percent in the fiscal year under
review. Lenovo launched a wide range of consumer-
targeted convertible products, including the Horizon
Table PC, an interpersonal computing device that brings
people together in a totally new way. The Horizon allows
up to four people to use it simultaneously, interacting
with content and playing games with joysticks, strikers
and dice. It also launched the detachable three-mode
notebook Lenovo Miix 2 10”, a Windows 8.1 tablet with
PC-level processing that can be used in stand mode,
for hands-free multimedia entertainment, tablet mode
when customers are on the go, and laptop mode for a
great combination of screen real estate with a full-size
keyboard.
During the fiscal year under review, the Group’s
smartphone and tablet businesses continued to post
strong unit shipments growth globally. The Group’s
worldwide smartphone shipments achieved a record-
high level of over 50 million for the year, growing by 72
percent year-on-year, solidifying its global number four
smartphone vendor position with market share growing
by one percentage point year-on-year to 4.6 percent,
according to preliminary industry estimates. The Group’s
strong smartphone results were driven by its leading
smartphone position in China and solid expansion and
strong growth in markets outside of China. The Group’s
smartphone shipments in China grew 55 percent year-
on-year to about 44 million and further strengthened its
number two position in the China market by increasing
its share by 0.7 percentage points year-on-year to
11.8 percent, amidst keen competition. Its smartphone
business outside of China grew robustly by 11 times
year-on-year to close to 6 million units, driven by strong
growth momentum in the ASEAN and Eastern Europe
regions. The Group’s worldwide tablet shipments, in
the meantime, quadrupled year-on-year to record-
high shipments of 9.2 million in the fiscal year and its
worldwide tablet market share gained by 2.9 percentage
points year-on-year to 4.2 percent.
Lenovo is committed to driving innovation for its products.
During the fiscal year under review, Lenovo broadened its
smartphone portfolio by unveiling premium smartphone
products including the K900, Vibe X, and its first LTE
smartphone, Vibe Z. During the fiscal year under review,
Lenovo also debuted its first multimode Yoga Tablet
at a livestream launch event with Ashton Kutcher, the
company’s newest product engineer. The game-changing
Yoga Tablet not only has an amazingly long battery life of
up to 18 hours, but it also features three unique modes
– hold, tilt and stand – giving consumers a better way to
Lenovo’s Yoga Tablet