Apple’s sales in China overtake Lenovo

[kewell333]

For the first time, Apple's sales in China have overtaken China's own Lenovo...although that figure includes iPhones and iPads, not just Macs.


A year ago, Lenovo CEO Liu Chuanzhi observed that its position in the Chinese market was secure, in part because Apple didn’t care about the Chinese market. “If Apple were to spend the same effort on the Chinese consumer as we do, we would be in trouble.” Lenovo has historically controlled about 30 percent of the Chinese market, but recent results from the two companies show Lenovo might be getting into trouble: Apple’s total sales revenue in China has outpaced Lenovo for the first time.

Comparing Lenovo’s most recent financial results with Apple’s, Lenovo pulled in $2.8 billion from the Chinese market during its most recent fiscal quarter, where Apple generated some $3.8 billion during the second quarter of 2011. Lenovo’s sales represent a healthy 23.4 percent growth from a year ago, but Apple’s sales in China are six times higher than they were a year ago.

Admittedly, Apple’s sales revenue includes the iPhone and iPad, rather than just Macintosh computers. While Lenovo has dabbled in smartphones and is working on getting its first tablet devices to market, Lenovo’s business is still primarily PCs.

The Financial Times was the first to report the comparison.

Lenovo has contested the characterization, noting that comparing Apple’s overall business—including smartphones and tablets&mdsah;to Lenovo’s PC-based business is not a fair comparison, and that Lenovo remains far ahead of any of its competitors in China. According to IDC, Lenovo is the third-largest PC manufacturer on the planet, behind HP—which is looking to sell off its world-leading PC business—and Dell;and Dell. In fact, Lenovo’s PC business was showing double-digit year-on-year growth, where the only other top-five PC manufacturer to show year-on-year growth over 5 percent was Asus.

Including Apple’s iPhone and iPad businesses alongside sales of traditional PCs is a controversial move; however, at least in the case of the iPad, some analysis firms seem to be willing to take the leap: DisplaySearch recently crowned Apple the world’s top mobile PC vendor—based on the success of the iPad.

 

[DADY]

a true Chinese patriot would never buy an apple product

 

[Chinese-Dragon]

That is bad news.

Lenovo needs to increase their competitiveness in the Chinese market.

 

[Mani2020]

Whats the price of an iphone 3GS and 4G in chinese markets?

 

[DADY]

forget about competitiveness. i say put more trade restrictions on apple. what i really want is for all apple stores to be shut down, but i know that will never happen, but this is a socialist country. China for Chinese first. i keep coming back to this, but the Chinese people really need to be more educated about multinational corporations, and what they do with their profits, ie fund terror attacks, destabilisation, colour revolutions, against China.

 

[below_freezing]

I'd not buy Apple over pure technical and cost-benefit grounds but Lenovo's prices are like robbery.

Hasee is the way to go. Cheap and ugly but it works and doesn't break down.

 

[VKVM]

if China wishes to develop her own brand then stop using English names 1st, and put restrictions on foreign companies. Chinese people are the consumers now.

I wish India would do that..

 

[Mani2020]

I'd not buy Apple over pure technical and cost-benefit grounds but Lenovo's prices are like robbery.

Hasee is the way to go. Cheap and ugly but it works and doesn't break down.

But most of the Chinese products specially the cell phones are not upto the par, they still lack many applications compared to the giant nokia or for that matter any other good company , the synchronization is not that good, plus the english language used in them is pretty awful , its like a google translation of chinese into english . but since fews days i had an experience with "YX tel" a "Hong Kong" based company and i am impressed though the graphics are not upto par compared to nokia or samsung but still some good applications in reasonable price.

But for the nokia lovers like me it still lags behind but nonetheless good value for money as they come pretty cheap

 

[westtowel]

Both are made in china

 

[CardSharp]

I'd not buy Apple over pure technical and cost-benefit grounds

You are ignore why Apple is so successful. It partially a status symbol. American companies are still the best marketers around (ever wonder why Americans are so driven to mindless consumption?)

 

[ChineseTiger1986]

The failure is the mother of success, hopefully this can make Lenovo stronger in the future.

 

[Transgress]

forget about competitiveness. i say put more trade restrictions on apple. what i really want is for all apple stores to be shut down, but i know that will never happen, but this is a socialist country. China for Chinese first. i keep coming back to this, but the Chinese people really need to be more educated about multinational corporations, and what they do with their profits, ie fund terror attacks, destabilisation, colour revolutions, against China.

That would discourage doing business in China soooo badly, not to mention all the CNN and BBC bashing that would come afterwords, making half the world hate China more. Card has a point, Chinese citizens buy apple due to status, China should do some implicit work, giving celebrities domestic products like what beats by dre is doing, ad campaigns, etc. to change our way of thinking.

On a side note, isin't Lenovo's profits mainly based on selling their products to large businesses? They have an ideapad that was pretty high in terms of quality for common citizens, but it's not doing nearly as good as the Thinkpad. Just promote their Ideapad more

 

[Nomenclature]

Apple thrives on the culture of conformity. I can't ever touch an Apple product, just the thought of rest of the world using exactly the same model is revolting. Apple will continue to sell in China unless a certain segment of the Chinese society become more independent thinkers.

 

[CardSharp]

Apple thrives on the culture of conformity. I can't ever touch an Apple product, just the thought of rest of the world using exactly the same model is revolting. Apple will continue to sell in China unless a certain segment of the Chinese society become more independent thinkers.

Well I would actually say that Apple's branding is designed to appeal to those who want to stand out. That is the whole tone of their Mac versus PC campaign.

 

[Nomenclature]

Well I would actually say that Apple's branding is designed to appeal to those who want to stand out. That is the whole tone of their Mac versus PC campaign.

One can sum that all up with one statement. "I'm unique, just like 100 million other people". That's Apple's idea of standing out.