Lenovo Group (China)

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Lenovo became the world's top-selling PC brand for the first time in 2013, but slipped back into second place again after four years. It is almost certainly the most widely known Chinese brand, and arguably a model for other Chinese companies seeking a wider international presence. It secured a global profile in 2004 though the acquisition of IBM's PC division. However that deal proved more troublesome than had been anticipated. Tied to maintaining IBM's high standards of quality, Lenovo's market share was undercut in Western territories by more aggressive low-end competitors. Although it maintained dominance of its domestic market and of the wider Asia Pacific region, it lost its position as the worldwide #3 PC manufacturer during 2007 to Taiwanese rival Acer. Since 2010, though, the group has made an extraordinary recovery, not least through two smart deals which added strength in Japan and Western Europe. As a result, Lenovo regained its third place ranking in 2011, overtook longtime #2 Dell in the final quarter of that year, and then finally overtook HP in 2Q 2013. It remains the best-selling PC brand in China by a considerable margin, a position it has held since 1997, and is now the #2 locally in smartphones behind Samsung. In two significant deals announced in early 2014, Lenovo agreed to acquire IBM's lower spec server business as well as the Motorola handset business from Google.

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Recent stories from Adbrands Weekly Update:

Adbrands Weekly Update 11th Oct 2018: Lenovo regained the top spot from HP in IDC's ranking of the top-selling PC manufacturers worldwide in 3Q. The US company had overtaken its Chinese rival in 2017 for the first time in years. Total worldwide shipments were down almost 1% year-on-year as a result of a 12% decline at 5th-ranked Apple and 11% among all other smaller manufacturers. Lenovo, though, saw a near-6% increase in shipments (as did #3 Dell), while HP was more or less flat. Acer in 4th place was up 8.5% year on year.

Adbrands Weekly Update 19th Jul 2018: New research from both IDC and Gartner suggests that the global PC market enjoyed its strongest quarter for six years. According to IDC, total PC shipments rose 2.7% to almost 62.3m devices, the best growth since 1Q 2012. However the growth was largely confined to the five leading manufacturers, all of whom reported a positive lift at the expense of other suppliers, who suffered a combined 11% decline. HP retained its position at the top of the table, though Lenovo closed the gap slightly as a result of its newly minted joint venture with Fujitsu of Japan. Dell remains 3rd, while Apple showed the weakest year-on-year growth (of just 0.1%) in 4th place. Acer rounded out the top five, with Asus ranked 6th globally. The top six companies alone account for well over 80% of total volumes.

Adbrands Weekly Update 19th Jul 2018: Publicis Groupe captured global media for Lenovo computers and mobile devices (including the Moto brand). A new dedicated entity is being created under the banner of Publicis One Media, to be underpinned by Spark Foundry and data unit Performics. The account was previously split between several different agencies including MullenLowe Mediahub in the US, indie Total Media in most of Europe and Mediaplus in Germany.

Adbrands Weekly Update 14th Jun 2018: Lenovo's global CMO David Roman has retired after eight years in that role. A veteran of the tech sector, he had previously spent 5 years as VP, worldwide marketing at HP, and 14 years as VP, worldwide advertising at Apple. He is replaced by Gina Qiao, previously SVP marketing at Lenovo's mobile division. At the same time, Nick Reynolds, former CMO for Asia Pacific was promoted to global head of marketing for digital, web & social media.

Adbrands Weekly Update 13th Jul 2017: HP held onto the top spot in the global PC market in 2Q according to latest figures from researcher IDC. It regained the lead from Lenovo last quarter for the first time since 2013. IDC recorded a 3% year-on-decline in total global PC shipments, but HP enjoyed a 6% increase, compared to a decline of almost the same percentage by Lenovo. As a result, the US company widened its lead to almost 23% of the global market, while its Chinese rival slipped back to 20.5%. Dell, Apple and Asus rounded out the global top five, with Acer back to 6th place.

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