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          Lenovo Group backs Microsoft, Intel products

          By Liu Baijia (China Daily)
          Updated: 2006-11-10 08:49

          ZHUHAI: Lenovo Group said it would actively endorse Microsoft's new operating system Windows Vista and Intel's four-core microprocessors and that the two products would significantly boost its sales of desktop computers.

          The company will sell its products with the new software and microprocessor installed, said Xia Li, vice-president of the world's third-largest computer maker and general manager of product sales and marketing in the Greater China region.

          "Windows Vista and four-core Core Duo 2 have been something the industry has expected, and for us they will also be a significant boost," said Xia yesterday in Zhuhai.

          The Chinese firm yesterday released its results for the second financial quarter ending September 30. Its desktop computer sales grew by 4 per cent year-on-year boosted by strong consumer computer sales.

          In the quarter, Lenovo's market share in China rose to a record high 36.5 per cent, increasing 2 percentage points year-on-year.

          Although the contribution from desktop computers fell from 45.6 per cent in its first fiscal quarter ending June to 42.4 per cent in the past quarter, Mary Ma, senior vice-president and chief financial officer, said the business made a turnaround to profitability from the previous quarter.

          "This shows we have plenty of room for improvement in profitability in the desktop business," she said.

          According to market intelligence firm Analysys International, the shipment of desktop computers rose by 20 per cent quarter-on-quarter to 4.36 million units, driven by the consumer segment, which had a growth rate of 25 per cent.
          12  

          (For more biz stories, please visit Industry Updates)



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