Lenovo: Apple won't dominate tablets forever

Apple is experiencing explosive growth in China, overtaking computer manufacturer Lenovo in its home country. Lenovo, though, is not threatened by Apple's success and notes that the companies are competing in two different markets. CEO Yang Yuanquing said, "Their (Apple) calculation includes the phone business but Lenovo's main focus is in PCs; our phone business isn't that strong even in China."
This is a situation Lenovo hopes to change by introducing a variety of Android and Windows tablets in the coming years. Unlike Apple which targets the high-end market with its US$499 iPad, Lenovo will focus on all tiers of the tablet market. Yang hopes to gain tablet market share by introducing mid and low-range devices that appeal to low-income customers in the smaller cities and townships. "We will be one of the strongest of the players in this area," Yang reportedly told the Financial Times.
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Apple is experiencing explosive growth in China, overtaking computer manufacturer Lenovo in its home country. Lenovo, though, is not...
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"Unlike Apple which targets the high-end market with its US$499 iPad, Lenovo will focus on all tiers of the tablet market."
Yeah, if Apple is so "high end" then why is everyone else having problems hitting those price points with equivalent hardware? Unless you want to go with a significantly smaller 5" or 7" form factor, you're not going to be able to do it without skimping on the CPU, RAM, case, etc..
One should also remember that Apple was more than willing to drop the prices on their iPods to stay competitive in the MP3 player market. I see no reason to believe that they'll do anything different with the iPad.
Also remember that Apple has FULL control of the hardware and software which no one else does. Well, until a Googlerola tablet device shows up....maybe.
August 22 2011 at 3:03 PM Report abuse Permalink rate up rate down ReplyDear Lenovo,
See HP. Thanks for playing.
PS. Without vertical integration that Apple has, you will not compete.
Apple doesn't need to dominate... Apple practically recreated the tablet market and now Apple own the tablet market.
August 22 2011 at 12:37 PM Report abuse Permalink +2 rate up rate down ReplyDefine "dominate". Dominate market share? Dominate profit margin? Dominate customer satisfaction?
Yeah, he's right, Apple may not dominate tablet market share forever. But, if the iPhone trends follow with the iPad, while Apple won't hold onto the market share lead forever, they'll still have higher profit margins and higher customer satisfaction. I've used enough Lenovo stuff to know that's it's definitely on the lower end of the PC hardware ladder with the sole exception of the Thinkpad. You'd do far better with laptops from HP or Dell than you would with a Lenovo machine. Based on that, I'd have a hard time recommending any of the Lenovo tablets either, especially with the Xoom and Galaxy 10.1 out there.
This is just cheap PR and posturing. They're shaking in their boots.
August 22 2011 at 11:43 AM Report abuse Permalink +4 rate up rate down ReplyCorrect. The fact that Lenovo would go to the effort to even address this means they are concerned.
August 22 2011 at 12:17 PM Report abuse Permalink rate up rate down ReplyNo, Apple won't dominate tablets forever. Duuuhhh??? Lenovo sounds like a 90-pound weaking who has just had sand kicked in its face. If they want to play in Apple's sandbox, they'd better get busy and start working out. If they possessed the ability to compete against the iPad today, they'd already be doing it. Instead, all they can evidently come up with is empty bluster.
August 22 2011 at 11:36 AM Report abuse Permalink +2 rate up rate down Replythey will move on to something BIGGER and better
August 22 2011 at 11:22 AM Report abuse Permalink +1 rate up rate down Reply"Yang hopes to gain tablet market share by introducing mid and low-range devices that appeal to low-income customers in the smaller cities and townships."
Translation: They want to make cheap crap.
I don't see how Yang thinks Apple is only catering to the high-end market only. The iPad's price is spot on with the competition, and when the prices in the industry drop, expect Apple's to drop as well.
Of course they won't. Just at the point where tablets become ho-hum everyday objects, Apple is likely to introduce something else, completely and "insanely great", and dominate THAT market.
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