Lenovo Becomes No. 2 PC Vendor, Leaves Behind Dell

Posted on December 27, 2011 by iGennie Technical Services

At the end of this year, Lenovo finally got upgraded to number two position in the list of PC vendors. It has over headed Dell, which was earlier on this position after HP. This result was declared after the yearly researches conducted by leading research firms like IDC and Gartner.

Even the top most company in this list, HP, saw quite a good growth of 5.3 percent in its market value. However, among all of the five leading vendors selected for research, the growth rate of Lenovo was found maximum. According to Gartner, the growth projection for Lenovo was 13.5 percent, which was much ahead of the Dell’s reported market share of 11.6 percent.

According to the research companies, Lenovo has worked hard to expand its market, which has led to the consistent rise in its market share. In addition, it has also not neglected its home turf in China and has taken due care of it during the whole period, which has become an added bonus for its market revenue.

Unlike Lenovo, Dell showed a decrease of 1 percent in its growth projection and was shifted to the third position, surpassed by Lenovo.

However, in-spite of the individual growth, the overall growth failed to compete with the earlier results. IDC reported that the growth for PC shipment at the end of this year was 3.6 percent, which was quite less than its earlier growth projection of 4.5 percent.

According to Gartner, the PC shipments grew by 3.2 percent this year, which was also lower than its earlier projected growth rate of 5.1 percent.

This downfall in the overall growth rate of PC shipments was totally unexpected, and the analysts blame the weak economic conditions of customers to be the main cause of this downfall. According to them, due to the weak economy, customers spend less on buying computers, which has affected the PC market. Another reason given was the rise of tablets, which has cut off the market of desktops and notebooks.

An IDC analyst, Jay Chou explained this in his report. He said “For the moment, PCs have taken a backseat to a range of other devices competing for shrinking consumer and business budgets,” but visualizing the future expectations, he also added that the PC growth is expected to pick up again in the next year, as the vendors are working on their products and trying to add new, advanced and interesting features in to their laptop devices.