CHINA’S multinational computer technology firm Lenovo aims to increase its market share and brand awareness in the tech savvy Philippine market as well as in South East Asia.
The company has unveiled its transformation strategy via a new business model this year for its Philippine channel partners. This is part of an ongoing shift for Beijing, China-based tech firm and it involves the entire device and connected ecosystem with emphasis on human centric design ̶ from wearables and smartphones to tablets, PCs, servers and software as well as cloud services.
“On the business front, we see strong growth momentum in South East Asia, with the Philippines being a key growth driver in the region for Lenovo. South East Asia is a mix of mature markets with an appetite for premium and cutting edge technology, as well as fast growing emerging markets with entry level technology penetration, giving us the opportunity to grow market share quickly,” Dr. Harry Yang, the new Lenovo vice president and general manager for South East Asia, told reporters on Thursday.
“Through our Protect and Attack strategy, Lenovo’s profits and revenues continue to expand through our three growth engines of Enterprise, Mobility, and Ecosystem/Cloud, as well as our strong PC business,” Yang said.
“With the smooth integration of Motorola and IBM’s x86 server business, Lenovo is now a far more dynamic and diverse company than it was ever before. We have recently demonstrated this through the sharing of our vision of the digital future at our first ever global Tech World event, and launched a newly energized brand identity and logo.
These are all part of the company’s transformation to continue our mission to deliver world class products and an exceptional customer experience,” he added.
Lenovo believes that the banking industry, business process outsourcing, logistics, healthcare, and education will continue to flourish in the Philippines, giving technology companies an excellent opportunity to continue showcasing innovative IT solutions (PC, Tablets, Smartphones, Servers and Software).
“We remain optimistic about the outlook of the Philippine market, especially in light of the ASEAN Economic Community integration this year,” said Michael Ngan, Lenovo country general manager for the Philippines.
We will continue to tap on market opportunities and maintain a strong execution of our ‘Protect and Attack’ strategy to propel the Philippine market to greater heights,” he added.
“2014 saw the rise of affordable multimode products like the Yoga Tablet 2, Yoga Tablet 2 Pro, and Flex 2. These devices enhanced user adaptability and changed computing paradigms with their exciting designs. Lenovo expects this trend to continue in 2015, and we will be bolstering our efforts in storefront expansion and customer touchpoints across the Philippines to better address consumer demand for mobility and flexibility,” he said.
“We are currently number two today in terms of branded smartphones and also number two in the tablet market in the country, but we intend to be the number one in the next two years,” he added.
Lenovo continues to strengthen its foothold in the Philippines and seize market opportunities in the light of trends in mobility, devices, services, and applications, which are expected to drive 10.1 percent growth in local IT expenditure this year.
On the global front, in a seasonally slow quarter with significant currency impacts, revenue was $11.3 billion, up 21 percent yearonyear.
Its net income totaled $100 million. Revenue was 63 percent generated from PCs, 25 percent from mobile and nine percent from the enterprise segment ̶ compared with the previous year where 83 percent of the total revenue came from the PC segment.
In that quarter, the Philippines was one of four markets that in which the company achieved double digit share in PCs and a 13.5 percent record-high share in sales of PCs and tablets.