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."

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  • christop
    No but they will sue anyone who comes close to their over priced I crap pad!!!
  • Other Comments
  • 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.