Lenovo is winning customers in Russia and India, two important emerging markets for the personal-computer company, the Wall Street Journal reports.
The company is offering colorful and cut-rate models that attract first-time and low-income buyers. Lenovo also is using retail franchisees who understand the individual markets and increasing advertising. That includes one of the world's biggest billboards, a 1,300-foot-long spot near the Kremlin, the newspaper reports.
Lenovo, which bought IBM's PC business in 2005, is trying to offset slower sales in the U.S. and other developed markets. The Chinese company has a headquarters facility in Morrisville, where it employs about 1,500 people who design, test and market laptops and other products.
In Russia, the company has increased its share of the PC market to 8.3 percent in the third quarter, up from 1.4 percent during the same period in 2008, reports research firm IDC. Lenovo is now the fifth-biggest PC company in that country, up from No. 14.
In India, where the company aims to add 1,000 franchised retail stores to the 350 it has already, Lenovo has expanded to 9 percent of the market from less than 7 percent at the end of 2008, the newspaper reports. The company ranks fourth in India, after Dell, Hewlett-Packard, and Acer by volume.
Despite its success, some analysts and investors believe Lenovo needs to be more aggressive about introducing new products that will help it compete in many markets against Dell, HP and other rivals.
Lenovo reported that its net income totaled $76.6 million in the three months ended Sept. 30, beating analysts estimates. Revenue rose to $5.76 billion, up 41 percent from a year ago.
Lenovo's American depositary receipts, similar to common stock for foreign companies, fell 24 cents today to $12.67. The ADRs are up less than 3 percent in the past year.
Read the full Wall Street Journal story here.