Lenovo to adopt new strategy to increase profit

Lenovo to adopt new strategy to increase profit

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Computer manufacturing giant Lenovo, on April 2, 2013, said that it plans to make its server and storage business arm into one of the major revenue sources of the company in the next three years. The recent announcement was made amid a dramatic decline in the global PC market sales.

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On the other hand, other international brands like Dell and Hewlett Packard are also looking forward to ways of boosting their sales. Chen Xudong, the Senior vice president and general manager of Lenovo’s China unit said, “We are looking for future profit generators, and the enterprise-level server and storage markets will surely fill that need”.

There are possibilities of a double digit slump in global shipments during the second quarter of this year, as the demand for computers in the country has reduced drastically. Earlier, China took more than 20 percent of the market share. For Lenovo, PCs remain the biggest contributor to profit and the growing mobile sector will play an increasingly important role in their overall strategy.

The sales of desktop computers have taken a hit after the advent of handheld devices and tablets, which have taken the market by storm, led by Apple’s iPad. Chen refused to forecast the future market share of Lenovo’s server and storage sectors.