Lenovo on Dell's government, education share: 'Attack!'

Summary:The (soon to be) world's biggest PC maker still isn't happy. Why? It still has a way to dent Dell's monopoly on the government and education market share.

Lenovo is a computer-building powerhouse, there's no denying that. But as it continues to edge up the market share rankings -- expected to reach the number one PC maker's spot this month -- the firm still isn't happy.

Not yet, at least. 

Screen Shot 2012-08-06 at 10.48.55
"Hands like doors." Image credit: CNET.

The Chinese PC making giant has yet to penetrate all of the markets it wants to, namely enterprises such as the lucrative government and education markets. After all, it's the colleges and schools themselves that have the resources to order PCs en masse, not the students.

Thomas Looney, vice president for Lenovo North America told Bloomberg in an interview, quietly warned Dell that the firm was coming for it in more ways than one. 

"[Dell is] the weakest kid in the playground right now," he said. Dell already has a high share of penetration in the K-12 market, and its continued venture in the government and education market retains more than a quarter of Dell's revenue. 

"That’s why I'm attacking now in those segments of the market. I can price very aggressively, and I've got the right products."

Zing.

But Dell isn't strictly the only one in Lenovo's crosshairs. Dell was recently relegated to the number three spot, according to Gartner and IDC figures. HP remains the market leader with 13.03 million and 13.42 million respectively, while Lenovo stands at 12.8 million in both rankings.

But if you take a look at who's going where , Gartner says Lenovo jumped 14.9 percent year on year while IDC said it rocketed by more than 25 percent in the same time frame, while HP and Dell lost more than 10 percent each. 

Bloomberg cites a number of interviewees stating Lenovo's position as not only strong but also set to rapidly grow. It continues to roll out products designed specifically for education -- a key focus for the firm -- and could reach a 25 percent market share up from its current 7 percent. The analyst pegging the numbers did not give a timeframe, however.

Lenovo expands in regions it aims to target with proportionally priced devices. Its recent expansion to Brazil -- a BRIC country -- marks its "protect and attack" strategy that pushes beyond the realms of the U.S., Japan, and Europe. 

From the government suppliers' list front, Lenovo's upcoming Windows 8-powered tablet will target U.S. federal government customers, Looney remarked, which will be made in Mexico to comply with the Trade Agreements Act. The law means the U.S. federal government can only purchase from designated countries, in which China is not one.

The firm looks like the best thing to come out of China since paper and fireworks. There's no doubt whatever Lenovo is doing, it's doing it not only right, but also well.

Topics: Lenovo, Dell, Government, PCs

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

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