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How Lenovo won its treasured NZ PC market crown

How Lenovo won its treasured NZ PC market crown

Quarterly numbers result of work over previous year

Mike Hill (Lenovo)

Mike Hill (Lenovo)

Credit: IDG

Lenovo claimed quarterly leadership in the New Zealand PC market for the first time and is determined to do it again and not be a "one hit wonder".

Country manager Mike Hill told Reseller News the company had its eye on the market leadership prize for the last year and a half. Achieving it was a great thing for Lenovo. 

"We've seen ourselves grow various segments and verticals and it's good to see the work of the team come though," Hill said.

Lenovo finished the quarter a shade over 27 per cent in market share for New Zealand, according to IDC's quarterly personal computing device tracker, 2020 Q3, up from 17 per cent in the previous quarter.

Hill said gains in the consumer segment, large enterprise and education drove the result.

Consumer sales reached 24 per cent share, up from 11 per cent in the previous quarter while large enterprise was up to 35 per cent.

Hill said on a "premium to market" basis, growth in comparison to overall market growth, Lenovo's share grew 58 per cent more than the market.

The consumer and enterprise PC market grew strongly overall, but small and medium businesses were very quiet, looking at how they spent their dollars probably due to pandemic uncertainty.

"Ninety nine per cent of the New Zealand business is transacted through the partner community," Hill said.

Lenovo's partner account grew 18 per cent year on year, with many more partners while in the enterprise market the company achieved some significant conversions, including FMG, TR Group and Vocus.

The biggest challenge for all hardware vendors during the pandemic has been ensuring supply, Hill said. Lenovo's supply chain people had got that part of the business right

"The global supply chain worked wonders, even more so in education space," he said. "We worked with the ministry to get devices in, especially for disadvantaged students."

The ministry was working with all the vendors but Lenovo seemed to do a really good job of managing to their expectations, Hill said, mostly with Windows-based as opposed to Chrome machines.

In the consumer market, the company pivoted to get the right kinds of products on shelves to support working from home, dual device use and large format screens using click and collect and home delivery.

So are the gains sustainable?

Hill said two years ago Lenovo was doing very little in education but there was now an opportunity to "build out" in that space.

Companies, meanwhile, were looking for zero touch deployment, and the company was shipping effectively from the factory to end user's desk and managed that well through a COVID-19 lockdown.

There was also a shift away from "just in time" supply chain deliveries towards "taking a position" in the market, particularly with Chromebooks.

Lenovo had another strong quarter ahead, Hill said.

"Everybody  is seeing the commentary about shortages so demand is ramping up," he said.

He predicted hot areas for the new year would be smart office setups and organisations resetting their meeting rooms.

The transition from April to Intel's new Tigerlake processor would also be a big driver of activity and there was a team working on that.

It was also a great quarter for Lenovo globally, taking the top spot worldwide.

Lenovo’s shipped 23.5 million devices during the quarter, followed closely by Apple, which shipped 22.1 million Macs and iPads. HP, Dell and Samsung respectively, which rounded out the top five. 

 


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