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Lenovo CEO Says Apple Will Not Be Able to Sustain the iPad’s Current Dominance

Discussion in 'Apple iPad News' started by Maura, Aug 22, 2011.

  1. Maura
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    Maura iPadForums News Team

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    [​IMG]

    John Paczkowski at All Things D writes today that Lenovo CEO Yang Yuanquing has been talking to The Financial Times about the iPad, saying that he thinks that Lenovo’s forthcoming line up of Windows and Android tablets will put the company right up there alongside Apple, and that Lenovo would be “one of the strongest players in this area.†As Paczkowski points out, this is despite the fact that last week it was reported that Apple had overtaken Lenovo in terms of revenue in greater China for the first time in 10 years, with Apple’s Q2 China sales reaching $3.8 billion. Yang said that he thinks Lenovo will succeed because its tablets will be able to reach more people as they will be, for want of a better word, cheaper than the iPad. He added that he thinks the tablet market will eventually diversify, in the same way that the PC market did after IBM’s initial dominance.

    Source: Lenovo: Apple Can't Dominate Tablet Market Forever - John Paczkowski - Mobile - AllThingsD
  2. Kaykaykay
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    Kaykaykay iPad Wizard

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    Blah blah blah. Deliver useful products and let them do the talking.

    I say that as someone with many Lenovo products. I want to see the products, not hear the hot air.
  3. thewitt
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    thewitt iPad Ninja

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    I think it's fair to say that Lenovo will dominate in the Windows tablet market - but belief that the market will move to Windows is a common misconception. They will likely have 20% of the market in the next year. Still a sizeable chunk, but no chance to dominate.

    -t
  4. silvertemplar
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    silvertemplar iPF Novice

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    Didn't HP also say something like this?

    ...look what happened ;)
  5. thewitt
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    thewitt iPad Ninja

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    HP owns the WebOS market....

    -t
  6. jrcrewe
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    jrcrewe iPF Novice

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    They've got a "tough row to hoe".
  7. Destroyer
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    I like see companies trying..!! because makes Apple keep improving itself.!

    Sent from my iPad using iPF
  8. Hasty
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    What's worrying is that he believes his own hype.
  9. docfreed
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    docfreed iPF Novice

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    The Guy Is Worng...

    and a jerk besides - anyone who would bring out a $500+ Tablet (ThinkPad) with Android after the HP debacle probably shouldn't be running a technology business!
  10. Kaykaykay
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    Kaykaykay iPad Wizard

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    Isn't he saying in the article that $500 is too much? He seems to be signaling that Lenovo tablets will be cheaper, so lots of Chinese will be able to afford them.

    Pricing is important, but value harder to produce. So bring on a Lenovo tablet, and let's see. As a shopper, I like choice. But I have a feeling that what a typical Chinese consumer can afford might not appeal to a Western consumer. I'm open to being surprised, though.
  11. thewitt
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    They will have very aggressive entry level pricing. They always do. Quality is only ok though.

    -t
  12. jsh1120
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    At the risk of poking Apple fanboys with a stick, the Lenovo CEO isn't just talking through his hat. The Lenovo ThinkPad Tablet released this week includes significant advantages over the iPad for business users and corporations.

    () Standard USB and micro-sd suppport with full encryption for local storage.
    () Micro USB support for displays.
    () Pressure sensitive digitizing stylus and built-in digitizing software.
    () Optional folio case with Lenovo keyboard. (Best in the business.)
    () Built-in corporate email support
    () Built-in Documents to Go.
    () Built-in VPN support.
    () Custom software installation with central IT control for corporate customers.
    () And a number of other features that are either unavailable on the iPad or available only as extra cost apps.

    All this at the price of an iPad.

    Is it an iPad killer in the consumer marketplace? Of course not. But any corporate or government IT department may well find it to be a much better device when they're purchasing tablets by the gross.

    And individual business users may well find many of the same features to be attractive.
  13. thewitt
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    Only time will tell of course, but Lenovo has a lot of catching up to do to match the iPad sales volume of 170,000 units a day...

    -t
  14. jsh1120
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    Well, that isn't going to happen. Ever. But a Porsche model will never sell as well as a Camry, either. And just as iPads have cut into low priced laptop sales, less expensive tablets will almost undoubtedly take market share from iPads.

    Apple undertook a novel pricing strategy (for them) with the iPad, pricing it very aggressively for the quality of the unit. As a result it has taken (and will still take) other manufacturers awhile to match that price point with similar quality devices.

    But as the Lenovo ThinkPad tablet demonstrates, other manufacturers have an option of appealing to specific markets with value added devices at a similar price point and/or lower quality devices at lower price points. In the US, I don't expect the latter approach to be especially successful, especially in the mass consumer market. But value added products such as the ThinkPad tablet have an opportunity to make a significant dent with corporate and government markets.
  15. HoJo
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    USB reminds me of cassette players...
  16. epb
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    I see the strategy of targeting business customers as flawed, since business is a small part of the tablet market. That's like seeing you'll beat McDonalds by selling only fish sandwiches.

    Apple products are a solid but marginal (currently 6%) part of the Personal Computer market because they've never been strong in general business areas and the bulk of PC workstations and laptops are bought by businesses.

    In the consumer market it's the reverse, Apple dominating with 74% of the table market. Those aren't Fortune 500 companies lining up outside Apple stores for the latest iPad - just consumers. In fact, the iPad would be an IT Dept. nightmare when you consider that most large companies update their operating systems every few years, while the iPad's iOS changes every few months.

    What we'll see in the tablet market is that Apple will continue to dominate (currently 74%) due to consumer sales and a HUGE lead, while the much smaller business segment of the tablet market will split among the other companies, likely by type of business (medical, industrial, financial, etc) as they have different requirements/concerns.


  17. jsh1120
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    Sorry, but what is flawed, I think, is your analogy. In the first place, the widespread assumption that success is measured solely in terms of "winning" some non-existent "game" is problematic. Business is not a game in which teams compete until the game is "over" and a "winner" is declared. To use your terminology, the fact that McDonald's sells more hamburgers than Burger King doesn't mean the latter "loses." Likewise, KFC sells more chicken sandwiches than McDonald's. Does that mean McDonald's "loses" the chicken sandwich "market"? (Whatever that is.)

    Apple has been spectacularly successful in expanding the market segment interested in purchasing tablets by targeting consumers who don't necessarily need (or want) a PC to consume media and play games and for whom an iPod or smartphone is simply too small to provide a satisfying user experience.

    That expansion of the market doesn't make the business segment interested in using tablets as supplementary tools smaller; it simply makes that segment a smaller percentage of potential tablet purchasers.

    Lenovo is very unlikely to make a serious dent in the mass consumer market that Apple dominates. That doesn't mean it cannot find a highly profitable niche among business users. Just as KFC finds a profitable market among those who like chicken and Long John Silver's does the same among those who like fish.

    Declaring "winners" and "losers" in business as if it were a football game is an amusing pastime and one in which consumer focused media specialize. It doesn't, however, have much to do with real business.
  18. thewitt
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    thewitt iPad Ninja

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    The problem is that Lenovo is claiming they will be "right up there with Apple," not that they will carve out a niche market in the commercial tablet space.

    I'm sure they will be successful, however I will be very surprised if they ever reach even 20% of the market.

    -t
  19. DarkHorizon
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    With HP dropping out there is more room for other big companies and unless Apple keeps developing and stays ahead like other market leaders before it competitors will step into its place.
  20. Kaykaykay
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    Kaykaykay iPad Wizard

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    Lenovo could make dirt-cheap tablets and sell to Chinese, for instance. They don't have to compete only in Apple's current market concentrations. It sounds like that's what the guy's saying -- lots of people can't afford iPads, and Lenovo can sell to those people, too. There are 1.3 billion Chinese, and there are plenty of Indians, etc., with limited income as well. Many of them might want an Apple, but will never afford one. That doesn't mean Lenovo or whoever else couldn't outsell Apple.

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