Lenovo entering 'PC plus' era, CEO says

Wed Jan 9, 2013 10:40pm EST
 
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By Poornima Gupta and Bill Rigby

LAS VEGAS (Reuters) - China's Lenovo Group Ltd, on track to become the world's No.1 personal computer maker, is leveraging on what it calls the "PC plus" era as the company ramps up its plant capacity in major markets including the United States.

PC demand growth has waned over the past year as more consumers flock to ultraportable and increasingly powerful tablets and smartphones for basic computing. Hewlett Packard (HP), Dell and other stalwarts of the PC industry are now fighting to sustain growth as tablet computers eat into their PC-related businesses.

But PCs aren't disappearing anytime soon.

"We don't live in a post-PC world," Lenovo Chief Executive Yuanqing Yang said in an interview in Las Vegas on Wednesday. "We are entering the PC plus era."

Yang said it is a post-PC world for one group: companies that do not innovate in PCs.

"In our industry many players think PCs have become a commodity product," he said. "We have never thought this way."

Lenovo, he said, has redefined the category with products like Yoga, a laptop running Microsoft Corp's Windows 8 that can be converted to a tablet PC by flipping the screen all the way backwards, and Twist, another laptop that has a screen connected through a hinge.

The two laptops have had brisk sales in the United States with Lenovo capturing 40 percent consumer market share in the $900 and above category.   Continued...

 
Lenovo CEO Yang Yuanqing stands after a news conference in Sao Paulo September 5, 2012. REUTERS/Nacho Doce