Lenovo targets 400,000 units in Africa

Lenovo, the information technology and electronics company, aims to ship 400,000 units into Africa in the current financial year according to its South African head, David Drummond.

Lenovo’s general manager for Middle East and Africa‚ told BusinessTech: “In the next financial year, we expect to ship about 400,000 units across Africa, (up from 260,000 in 2011).

“We are more or less maintaining 10% of market share in SA, putting us at number four (behind Dell, HP, Acer). We would like to get to number three this fiscal year, a position which would be achievable if target projections are met.”

Drummond, who took up his new post earlier this year, said that the Middle East and Africa region has been growing rapidly for the past couple of years, in line with the global business.

He said that the group had managed to grow market share in the Middle East and Africa region in the past few years, from 6%, to a maximum of 12.5%.

He said this had been achieved through corporate business in which it boasts clients including, Absa, PWC, and Transnet.

Towards the end of May, Lenovo Group announced results for its fourth fiscal quarter and full year ended March 2012. With full-year record sales of $US29.6 billion, an increase of almost 37% year-over-year, Lenovo finished its financial year as the world’s second largest PC vendor with a record full-year market share of 12.9%.

Emerging Markets sales jumped 43% year-over-year during the fourth quarter to a total of $US1.2 billion.

The group, with claims of being the second largest PC company in the world, bought IBM Personal Computing Division in 2005.

Lenovo’s SA operation has a staff headcount of 42 people, including service and support and just over 100 employees in the EMEA region.

Drummond said that the split between laptop and PC is roughly 50/50 in the region under his control.

“We’ve seen the South African market maturing at around 2.4 – 2.5 million units. We are however, starting to see a little bit of growth coming back in,” Drummond said.  He stressed however, that with some reduction in the average price of a unit, “this market is quite steady year on year”.

“We see tremendous growth in the rest of Africa (in which Lenovo operates), but obviously off a low base,” Drummond said.

Lenovo ships approximately 35,000 units into Africa, outside of South Africa, and Drummond hopes to focus on the group’s headway in Kenya, with a stronger push into Nigeria buy opening up an office in Lagos in the not too distant future.

Related articles:

Lenovo looks to lay pressure on HP, Dell

 

Must Read

Partner Content

Show comments

Trending Now

Follow Us

Lenovo targets 400,000 units in Africa