Lenovo's tablet shipments grow in China with low-priced products

Lenovo was China's second largest tablet vendor in this year's first quarter, according to research firm IDC

PC maker Lenovo has used a basement price strategy in China to become the country's second largest tablet vendor, coming ahead of rivals offering Android-based products, according to research firm IDC.

In this year's first quarter, Lenovo had a 17.2 percent market share of China's tablet market, according to IDC, with Samsung trailing far behind with a 3.8 percent share. Among Android-based tablets sold in the country during the quarter, Lenovo's reached a 48.2 percent share.

The market share of the PC maker's tablets is still far behind that of Apple's iPad, which shipped almost 1.2 million units in China in comparison to Lenovo's 316,000 units at the end of the quarter. But on Wednesday, Lenovo CEO Yang Yuanqing said during an earnings conference he wanted the company tablet's market share in the country to reach more than 20 percent in the new fiscal year.

Lenovo's tablet shipments have risen in part because the company used a low-price strategy similar to Amazon's Kindle Fire, said IDC analyst Dickie Chang. For instance, one version of Lenovo's LePad A1 comes with a 7-inch touchscreen, has only 2GB of storage, and is priced at 1,000 yuan (US$158). Lenovo also offers another version of the LePad A1 with 16GB of storage for 1399 yuan ($221).

China is also Lenovo's home turf, where the company has remained the top PC vendor in the country for over a decade. The company benefits from a strong brand image, along with an extensive sales channel that can reach China's smaller cities, Chang said.

"Lenovo is the number one PC brand in the country and people trust the brand," Chang said. "People who haven't had a tablet before, they will start with a cheap one, and Lenovo's tablets are priced very reasonably."

In contrast, Apple's iPad starts at 2,988 yuan in China. The company is also in the midst of a trademark dispute over the iPad name in the country, and has yet to begin selling the newest version of its tablet in China.

Chang, however, cautioned that IDC's data only accounts for official tablet sales in the country. If the large number of iPads sold through China's unofficial gray market are included, Apple's share of tablet shipments will be higher.

China began outpacing the U.S. last year to become the world's largest PC market, according to IDC. But the country's tablet market is still fall far behind the U.S. For this past first quarter, China saw 1.8 million official tablet shipments, according to IDC. The U.S. in contrast had 6.8 million tablet shipments, about 64 percent of which were Apple's iPads.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?