Microsoft’s entrance into the tablet market has, politically correct phrases aside, pissed companies off. But despite feeling betrayed, Lenovo is one company that isn’t sweating.
Lenovo’s CEO Yang Yuanqing offered his thoughts on Microsoft competing against the hardware companies it typically works alongside in an earnings call:
“Although we don’t like Microsoft providing hardware, for us, it just adds one more competitor.”
“[They’re] just one of our many competitors. We are still confident that we are providing much better hardware than our competitors including Microsoft.”
“They are strong in software, but [we] don’t believe they can provide the best hardware in the world. Lenovo can.”
Lenovo isn’t just talking hot air. The company has the second largest stake of the PC hardware market at 15 per cent and claims it is closing in on top-dog HP, who has 15.7 per cent.
In the earnings call, the Chinese company revealed it reached $8 billion in sales for the quarter, a jump of 35 per cent compared to the same period a year ago. These sales generated a net income of $141 million, which TechRadar estimate is an increase of 30 per cent from last year.
Lenovo has had particular success in Asia Pacific and Latin America regions, as shipments grew by 59.2 per cent in the quarter. Shipments in China alone grew by 9 per cent.
Asia comprised 21 per cent of Lenovo’s total sales for the quarter, while North America accounted for 15 per cent of their global sales.
It is hoping its Windows 8 tablet, the ThinkPad Tablet 2, will mirror the success the company has had in the PC market.
“To be frank, we’re not that worried about [Surface],” Yuanqing added. “Microsoft is still our strategy partner. We are very optimistic on the Windows 8 launch so we will fully leverage that to launch our new products.”
One reason why Lenovo might not be sweating Microsoft’s surface is because they’re rumoured to be working on a second Windows 8 tablet, a Windows RT version powered by Nvidia that has a flip-out keyboard.
On the Surface, that sounds awfully familiar.