future prospects - Lenovo

2009/10 Annual Report Lenovo Group Limited 18
MANAGEMENT’S DISCUSSION & ANALYSIS
PERFORMANCE OF PRODUCT GROUPS
Lenovo created two product groups last year with an
objective to ensure faster and stronger end-to-end
management within the Group. The Think Product
Group - targets mainly at commercial customers; and
the Idea Product Group - targets mainly at consumer
customers. Meanwhile, a new Mobile Internet Group
was formed upon the completion of the reacquisition of
Lenovo Mobile.
Think Product Group
The Think Product Group, mainly targets at commercial
customers, approximately accounted for 65 percent of
the Group’s sales during the year. The Group’s Think
branded PC segment grew at 9 percent year-on-year,
better than the worldwide commercial PC market
growth.
The worldwide commercial PC market continued
to decline in the first half of the year as enterprises
continued to remain conservative in their IT spending,
but the market stabilized towards the end of the fiscal
year as the macro environment improved.
Demand for notebook PCs continued to show better
growth compared to that of desktops, with the majority
of the industry growth occurring at lower price brands.
Lenovo’s ThinkPad notebooks outperformed the
market with 15 percent year-on-year growth in unit
shipments during the year. The strength of ThinkPad
can be attributed to 68 percent unit shipments growth
in China and sustained sales in Mature Markets.
Building on the success of the X300 product launched
in 2008/09 fiscal year, the Group has introduced its
thinnest and lightest flagship T Series model ever,
the T400s, maintaining Lenovo’s position as the high
performance standard in the premium PC space. The
X Series line of ultraportable notebooks continued to
represent some of the most powerful notebooks in
their class, driven by standard voltage processors in
super light designs. The W700ds revolutionized the
mobile workstation market with a dual screen aimed at
increased productivity, while the launch of the all new
W510 brought high performance workstations into a
more mobile 15” platform.
ThinkPad Series notebook
Lenovo launched the all-new ThinkPad Edge and
ThinkPad X100e product lines at Consumer Electronic
Show in January 2010 in Las Vegas (CES 2010) to
target SMBs, which is the fastest growing segment of
the commercial PC market. ThinkPad Edge products
combine the quality and reliability that ThinkPad is
known for with a progressive new design, a redesigned
contemporary keyboard and Lenovo's ThinkVantage
suite of software tools. The all-new X100e addresses
the entry ultra-portable needs of small businesses
looking for affordable mainstream notebook
performance, superior usability, and legendary
ThinkPad quality.
Lenovo also launched a series of new desktop
products to protect its core enterprise business as well
as to attack transactional business during the year.
These include ThinkCentre A58e and ThinkCentre
M90 series, the greenest product in ThinkCentre
family which delivers powerful performance featuring
Intel’s New Core processors, as well as Lenovo’s first
commercial All-in-One, ThinkCentre A70z that occupies
70 percent less desk space compared to a traditional
desktop and monitor, can be easily set up within three
minutes without cable clutter; and significantly reduces