Lenovo Seen to Challenge HP's Leading Status in 2012

Taipei, Dec. 21, 2011 (CENS)--The China-based Lenovo, now one of the world's top two PC suppliers by market share, is expected to keep moving uptrend amid a persistently slack PC market to challenge HP's leading status in 2012, which, in turn, will allow more growth momentum for Taiwanese contract manufacturers in the short term.

Although the global PC industry is likely to see only a single-digit sales growth due mainly to a lackluster global economy, Lenovo, is still widely expected to continue gaining considerable steam on robust consumer demand in China to boost its global market share in 2012, when the world's most populous country may outpace the U.S. as the largest market for PCs.

Market observers pointed out that Lenovo, which commands over 30% of the Chinese market for the time being, is estimated to ship between 42 million and 43 million units of various PCs in 2011, and further push up the shipment figure to 46 million units in 2012. Optimistically, the observers said, the Chinese PC supplier will take over HP's No.1 spot in the year to further benefit its Taiwanese contract manufacturers.

Lenovo has contracted Compal, Wistron Corp., Quanta Computer Inc. and Pegatron Corp. to supply laptops, Elitegroup Computer System Co., Ltd. and Wistron to produce desktops, Inventec Corp. to make all-in-one PCs, Compal to turn out tablets, and Compal Communications Inc. to manufacture smartphones.

A couple of electronics and PC parts suppliers have also joined Lenovo's supply chain, including Aces Electronics Co., Ltd. and T-Conn Precision Corp. (connectors), Auras Technology Co., Ltd. and Chaun-Choung Technology Corp. (thermal dissipation modules), Simplo Technology Co., Ltd. and Celxpert Energy Corp. (battery modules), Ju Teng International Holdings Ltd., Coxon Precise Industrial Co., Ltd. and Bin Chuan Enterprise Co., Ltd. (PC housings), and Shin Zu Shing Co., Ltd. (laptop and cell phone hinges).

Noteworthily, just after inaugurating their joint-venture manufacturing base in Chengdu, western China, Lenovo and Compal have also announced another joint investment in setting up a new factory in Hefei, eastern China, indicating their increasingly close business ties.