Lenovo Group eyes more cloud, content

Lenovo Group eyes more cloud, content

Mr Thaneth says Lenovo has a three-wave strategy to achieve long-term revenue.
Mr Thaneth says Lenovo has a three-wave strategy to achieve long-term revenue.

Lenovo Group, the world's largest computer maker, has shifted its focus from hardware to content and cloud services, as well as high-growth premium products.

The move aims to capitalise on the digital lifestyle to make up for the saturated PC market.

"Lenovo will be customer-centric, providing smart devices with applications and integrated services based on the cloud infrastructure," said Thaneth Angkasirisan, general manager Lenovo Indochina, who oversees Thailand, Vietnam, Cambodia, Laos and Myanmar.

Mr Thaneth said Lenovo has a three-wave strategy to achieve long-term revenue.

The first two have been achieved: leadership and profitability in the PC market, and growth of its mobile business through its acquisition of smartphone maker Motorola, and the data centre from IBM's server business.

"The next is investment in new devices, bundled with cloud and content," he said, adding that the company aims to turn hardware users into subscribers and promote more user engagement.

Takon Niyomthai, consumer business group manager of Lenovo (Thailand), added that during 2017- 2020, there will be three high growth areas in the consumer market -- two in one devices that combine notebook and tablet, premium ultra slim notebooks, and game devices.

In 2017, the overall computer market in Thailand is expected to reach 2.2 million units, of which 1.2 million units would be in the consumer market and the rest in the corporate sector.

Of the 1.2 million units in the consumer market, 500,000 units would be desktops and 700,000 units notebook computers. Lenovo estimates that the two-in-one premium devices combined with ultra slim (less than 1.5 kilogram) and game devices will increase its share from 30% of 700,000 units currently to 70% within two years while its share in traditional notebooks will decline from 70% today to 40%.

Mr Takon said the local computer market will grow by 3-5% in terms of units, and 5-10% in terms of revenue in 2017. The growth is basically generated by an increase in premium products that boost average selling-priced products higher, from 18,000 baht last year to 20,000.

Lenovo yesterday launched its new two-in-one devices Yoga series, Ideapad ultraslim notebook, and Legion, which is its sub-brand gaming notebook and desktop, catering to youngsters, first jobbers and gamers. The company also launched the "Lenovo entertainment hub", a portal site for its customers to access exclusive contents, particularly games, music, movie which they can buy or subscribe.

By the end of this year, Mr Taknon said Lenovo will introduce its Lenovo Windows Virtual Reality (VR) headset and fitness tracking.

"VR is a high growth market which will increase globally over the next four years," said Mr Takon. Thailand is one of seven markets where Lenovo will launch the portal, the others are Vietnam, Indonesia Singapore, Malaysia, Hong Kong and Taiwan.

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