Lenovo Is Ready for Another Take Over on Personal Computer Market.

Tag : computer markets

Lenovo Group, one of the world’s top personal computermanufacturers, is ready to acquire one of its smaller rivals toboost its presence on well-developed markets, media reports claim.One of the possible targets for the Chinese PC conglomerate is astake in Fujitsu Siemens Computers.
“Although we remain cautious, it is time for us to take onanother challenge. […] We’ve seen valuations go down in this market, which presentsus with opportunities to grow either by acquisition orpartnership,” chief financial officer Wong Wai Ming said inan interview with South China Morning Post news-paper, reports Reuters news-agency.
After Acer Group acquired Gateway and Packard Bell recently, Lenovolost its No. 3 spot to its rival. In Q2 2008 Acer commanded 9.4% ofthe worldwide PC market, whereas Lenovo’s market share was7.9%, according to Gartner market tracking firm.
Since profit margins on the PC market are very thin, personalcomputer vendors are competing very seriously for higher marketshare since this gives them an ability to trim manufacturing andparts costs because of larger volumes.
Fujitsu Siemens Computers (FSC), a joint venture between Fujitsuand Siemens, commands less than 6% of the PC market in EMEA(Europe, Middle-East, Africa) region, according to IDC market tracking firm. In fact, FSC is the 7 th largest PC vendor in the region, whereas Lenovo is at No. 6. Givenvery low profitability on the PC market, Siemens reportedly plansto sell its stake in the company and Lenovo is considered as one ofthe potential buyers.
Theoretically, Lenovo might be interested in acquiring a stake inFujitsu Siemens in order to better compete against Acer in Europe.However, given weak positions of FSC, it may make more sense forLenovo to try strengthening its own brand instead of taking overthe smaller rival.
Tags: Fujitsu Siemens , Lenovo , Acer