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Lenovo plans to use ultrabooks to surpass HP

Sharon Gaudin | June 5, 2012
Lenovo is working to surpass HP as the top PC maker in the world and executives think pushing ultrabooks is the way to make that happen.

However, Olds added that Lenovo has a lot of hard work and expense in front of it for that to happen.

"They're going to have to capture an even larger slice of their China home market and do better in developed markets, like the U.S. and Europe, to top HP's volume," Olds said. "They're going to have to sell a lot of low-priced, low-margin products in order to capture that volume. So they'll be sacrificing profitability for volume."

Patrick Moorhead, an analyst with Moor Insights & Strategy, said he expects Lenovo to have to do more than succeed with ultrabooks to catch up to and pass HP.

"Lenovo has a chance to attain the number one market share spot, particularly if they can take advantage of the organizational upheaval at HP," he added. "Ultrabooks are certainly a part of Lenovo's overall strategy, but they will need to do a lot more to catch HP.... Lenovo is an unknown in U.S. retail and they must become a player here to be more relevant and gain share."

 

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