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Spokesperson for Lenovo Group says that the new round of staff reduction will last to the yearend and the extension of the reduction will hang on the whole economic climate.
As the biggest PC maker in China and third in the world, last time Lenovo Group slimmed itself in April 2007, when it cut off 1,400 globally, with its China's arm unscathed.
Industry analysts point out that besides the global economic slowdown, its ailing sales were also to blame. Latest figures from IDC and Gartner show that shipment of Lenovo was far less than the industry average.
Gartner says that market share held by Lenovo was down to 7.8% by the end of the third quarter of 2008 from 7.3% in the previous quarter. While the reading from IDC indicates that Lenovo's market share in China has declined to 25% by the first quarter of 2008 from 35% in the same period one year ago as a result of the fiercer competition from its archrivals such as HP, Dell, and Taiwan-based Acer.
Lately some reports said that Lenovo would take over the PC sector of Fujitsu Siemens Computers. Yang Yuanqing, chairman of Lenovo, earlier said that Lenovo intended to outpace Acer through acquisitions to be the third largest PC maker in the world.
In the meanwhile, some forecasted that the stagnant PC business of Fujitsu Siemens Computers may be sold after IBM put its PC sector on the block.
Fujitsu Siemens Computers was a joint venture co-founded in 1999 by Fujitsu and Siemens. The company in 2002 integrated the PC and server departments of Fujitsu and Siemens, becoming the fourth largest PC brand in the world. Analysts from investment banks estimate that the valuation of Fujitsu Siemens Computers is between USD 3.21 billion to USD 4.65 billion.
Recently Siemens was about to sell its stakes in the joint venture to Fujitsu. And then Fujitsu would sell the PC businesses to Lenovo, according to some reports.
To cement its market presence domestically, Lenovo has even resorted to the old tricks. It recently marked down a Lenovo notebook computer to CNY 2,999. Such low prices took the industry by surprise.
Industry analysts point out that it is inevitable for PC makers to lower down their products prices in face of the ailing micro economy and the shrinking domestic spending. Other Chinese PC brands such as Founder and Great Wall lately have all reduced prices.
From www.cnstock.com, Page 1, Tuesday, October 21, 2008 info@SinoCast.com
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