Lenovo Says Apple Can't Dominate Tablet Market Forever

For the first time in over a decade, Apple sales surpassed Lenovo in revenue within greater China. Lenovo's China sales – which doesn't include Hong Kong and Taiwan – rose 23.4-percent from a year ago to $2.8 billion whereas Apple's same quarter – which does include Hong Long and Taiwan – jumped sixfold compared to this time last year, ending at $3.8 billion. Analysts suggest that Lenovo needs to beef up sales in Hong Kong and Taiwan in order to catch up with Apple.

But Lenovo CEO Yang Yuanquing dismissed the fruity "achievement" by saying that the two revenues can't be compared, that it's not apples to apples because the Cupertino, CA-based company's numbers also include iPhone sales – Lenovo's phone business isn't all that great even in China, as its primary focus is on the PC sector.

"If you compare the PC business we still have a lead far ahead of any of our competitors,” Yang told Financial Times.

But seemingly like all other tablet makers, Lenovo plans to tip the scales against Apple by launching its own line of Android and Windows-based tablets that will hopefully put an end to Apple's domination of the tablet sector.

"We will be one of the strongest of the players in this area," he said. "Apple only covers the top tier. With a $500 price you cannot go to the small cities, townships, low salary class, low income class. I don’t want to say we want to significantly lower the price, rather our strategy is to provide more categories, to cover different market segments."

If anything, HP proved the need for addressing the low-income market when it hacked the price of its TouchPad down to $99.99 and $149.99 over the weekend. As the quick sell-out revealed, everyone can't afford to shell out $500 for a new tablet, and even if they do have the resources, they just may not be willing to part with that kind of money given the current state of the economy.

Nevertheless, while acknowledging Apple's 70-percent claim of the tablet sector, Yang also pointed to the PC sector, how it began with a market controlled by IBM to a market that's very diversified. This is also expected of the tablet sector – that Apple won't always serve as the supreme ruler.

In addition to the tablet sector, Lenovo is going after Apple on the smartphone front with Android-based devices. "We have a smartphone in the same price band as the Apple (iPhone) but we also just released a $150 Android-based handset aimed at those with lower incomes," he said. "We think we can achieve more volume with that product."

  • christop
    No but they will sue anyone who comes close to their over priced I crap pad!!!
  • alidan
    apple will always be apple, and this hurts them more than any other company in existence, though it hasn't shown that on the ipod,phone,pad side... for some unknown reason.

    ipod is a pain in the (do not want sanction again) to manage, and i cant for the life of me figure out how to actually make a backup of it without hacking it, let me drag and drop off not this apple sync thing. when my moms ipod touch got an os upgrade, se lost all her contact info along with songs because the thing wouldn't back up and restore properly. anything else i would have been able to drag and drop and restore manualy but not an apple product.

    the iphone had horrible design choices (you aren't holding it right) and they look down on you, patronizing you, instead of out and out admitting it.

    and the ipad is the worst of them all, tied to an os that isn't a real os.

    all its going to take is for either windows or android to make an os that is compatible with windows, where apps can be use on computer, files are easy to transfer, and real programs, not mobile counter parts, are used, and ios will slowly fade away. because honestly... apple cant evolve without being dragged kicking and screaming - see apple and games for the most recent example. and done bring up iphone or ipad, the market was always there for those, but never correctly exploited till apple as they brought a "cool" factor, instead of geek label that was on such devices before.
  • eddieroolz
    Being a Chinese company I think they know their demographics the best. When I visited Beijing this summer I was struck by just how unreachable Apple products are to the general public.
  • walter87
    @ Alidan
    Well Said
    Can't wait to see how Windows 8 will perform when a true full OS is implemented into a sleek tablet. Apple will literally need to move OS X to their iPad once that happens.
  • Clueless comments so far. iPad and iPhone are already running OS X, what you see is the iOS on top. Windows 8 will likely be the same recycled POS that Windows
  • Martin9630
    Ahem, since when did Apple dominate in anything apart from shoving their heads up their asses?
  • You assume people want tablets to be pcs. All the pc Windows fan boys are decreeing that the pc is not even midlife yet not end of life and I agree.

    Do I want a wicked pc to browse a bit on and play awesome games on and do work with photoshop? You bet I do. And I do. Could I use a touch screen to play actual games with? No, could I use a touch screen for photoshop (let alone a 10.1" monitor)? Hell no.

    Could I use my pc lie on the couch or in bed and quickly check emails, browse the net or read a book? nope. Could I take it ouch casually to my parents and show them vacation photos? nah. Could I do all this with a laptop? absolutely, but it is much bulkier and no way near as intuitive. Put a real OS on my ipad and it becomes a lame duck pc with a crappy operating system bogged down by my specs and a touch interface. It will never allow me to play proper games without a keyboard and mouse and will not ever be suitable for my design work and the battery life will be crap.

    What I want is a fully featured PC for my serious computing and a light/fun/efficient tablet for casual browsing, checking home emails and looking up imdb when I'm watching a movie on the couch and can't remember what I've seen that actress in before. Put a full operating system on my tablet and you defeat the point. Put a tablet os on my PC and I'll throw it away!

    I might sound like a nut but I like a simplified "not real os" on my tablet. And I believe a few people think like me. And man I was gutted missing out on one of those HP touchpads. Wouldn't have to steal my wifes ipad all the time If I had one.
  • alidan
    walter87@ AlidanWell SaidCan't wait to see how Windows 8 will perform when a true full OS is implemented into a sleek tablet. Apple will literally need to move OS X to their iPad once that happens.
    i honestly doubt that windows 8 will be the os, it will most likely be a service pack update that gets the tablet to work right, because i can see a ton of bugs they wont catch in a testing phase, but will when it the public gets it.

    but here is the thing, it may be to windows advantage to come out with a broken os that works out of the gate. if it does things that ipad cant but is meh, apple wont see a need for osx in tablet, and while the 8 is out and getting the test feed back, they can make it magnitudes better, and launch the update, and at that point, apple wouldn't be able to respond fast enough, giving windows a longer chance to dominate.

    but in honesty, apple may not even get the hint until its to late. they have a bad habit of sticking to something thats failing and blaming it on people, instead of actually fixing the problem, see the most recent example of the antenna, and an older one of them sticking to a processor that forced people to code a version specifically for them, more so than now. and another when they had to be bailed out.

    there is a good chance that they would stick to a separated app and os environment, even if windows starts to over take them because of an integrated environment.
  • killerclick
    Well they're still dominating the portable music player market with iPod even after 10 years so... I don't see why they can't dominate with the iPad.
  • lesz422
    for the People here saying Apple is crap, i dont think there is ANY chance that i would employ you to run my company ( if i had one)

    because with you, it would end up like HP.......

    Apple must be doing some right? show me where they are going wrong and i show you a idiot

    and i am a MS fanboy:)