The Lenovo Group’s Personal Computer Fortunes Decline

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The Lenovo Group recently posted financial figures and they are not very good. The Chinese company remains the number two personal computer maker behind HP, but the position seems to be a dubious one. Lenovo has just posted its first quarterly loss in two years. The company’s declining revenue indicate the future of the personal computer market could be bleak. People simply are not buying PCs.

“Not buying” might be too harsh of an assessment. The company’s revenues are still well into the billions of dollars. Regardless, sales figures remain low. The potential for sales to rebound seems limited. Not very many consumers appear interested in buying personal computers. Lenovo must compete with the powerful HP company for those customers who do buy the classic desktop model.

Years ago, consumers bought the traditional desktop computer in higher volumes for an obvious reason. Desktop computers were much less expensive than laptops. Additionally, laptops were the only devices that offered any form of competition. Today, all this has changed and changed dramatically. Laptops can be purchased in the $200 range. Tablets and other mobile devices have also entered the market to provide competition. In fact, tablet and smartphone sales contributed mightily to
Lenovo’s woes.

And desktop units take up a lot of space. They definitely aren’t mobile. Yes, many things work against the sale of laptops. Businesses do seem to invest more in office desktop systems indicating desktop computers won’t disappear soon. The clock may be ticking on the need for these systems in the future.

The slow decline of Lenovo’s fortunes may indicate a dire future. Could this company make a strong comeback in the market? A combination of producing stellar personal computers combined with renewed interest in PCs would help, but the odds of the latter happening are low.

Lenovo could target the tablet market with exceptional products, a plan the company likely is considering.

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