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

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.

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TOPICS: Lenovo, Dell, Government, PCs
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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

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8 comments
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  • juicy couture tracksuit

    thank you for your good post!
    shengxuan
  • dont buy Dell!

    the local council bought in excess of 4000 Dell optiplex systems for the Education sector in SW Scotland 6 years ago. The deal was apparantly good, the customer service not good at all. Whenever a Dell PC went faulty, under warranty, the amount of hoops that had to be jumped through, just to speak to someone technical, was ridiculous. You would phone technical support, who would note your 'service tag' and then put you on hold while they put you through to another department. We are/have technicians in schools who handle repairs/upgrades all the time but Dell seem to think that this doesnt matter and advise(d) their own methods which turned out to be a waste of time. Waiting for parts to arrive took way longer than needed, sometimes upto 4 weeks for a HD. In one instance the support line didnt know how to unlock a HD that a student had put a password on. Dell's advice 'take it to PC World' - this for a PC STILL under warranty. We have since bought Lenovo laptops and they prove to be a worthy successor to Dell, wish we had Lenovo first!
    tHeClAw-08986
    • Don't Buy Dell

      I am Canadian but Dell support is superb. You an American in these troubled times and to boot in the school system telling the kinds to buy cheap Chinese products...from a Chinese owned company...down the tubes goes America..oh they'll be made in Mexico to boot!
      rmacleod9
  • We can trust China, right?

    I'm sure they'll respect our security and privacy by not implementing any back doors in critical computer infrastructure, right?
    ejhonda
    • Buying without trust may be possible

      Chinese firms can never be trusted, because the Communist Party and People's Liberation Army can violate or threaten to violate the human rights of any Chinese person (including employees of the firm, their families, etc.) at any time. However, Chinese firms, except those with links to the CPC or PLA, could still be considered if their prices include funding for Western intelligence agencies to do the following five things:

      1. Analyse design plans and documentation for every product and component (including source code for software)

      2. Disassemble and test/analyse an initial free unit of every product/component

      3. Carry out on-going testing/analysis of randomly selected units, with replacements provided free of charge

      4. Continuously monitor all areas of production facilities, to ensure compliance with Western labour, environmental and human rights laws

      5. Analyse all financial accounts and transactions, to ensure products are not being dumped below cost

      If the Chinese producers include funding for the above services in their prices, then those prices will reflect the true costs of using those products, so there is no reason not to consider buying them (if the prices are competitive).
      WilErz
  • It's all made in China

    Three companies fighting it out like it's America vs. China when it's all being built in communist China. That's what the real story should be.
    fldbryan
    • Yep - Lose, lose

      Though it's a lose, lose situation, I'd still much rather see the business go to an American company, instead of a totally Chinese one. On the one hand, you can't blame Mr. Looney (is *that* really his name????) for trying, but we need to recognize Dell has indeed earned the business. Now our congress people are liable to be inundated with emails encouraging them to never ever allow Lenovo to become an authorized GSA supplier. As ejhonda mentioned the trust factor and as there are other issues (such as Human Rights) which also come into play - not only about trade balance in dollars - it needs to be a more thoroughly considered issue. Of course we can trust *our* "government" to be thorough, and honest, can't we?
      Willnott
  • u forgot to mention

    compass, gunpowder etc......
    china had indeed contributed a lot to humans' advancements.
    gundam_0083