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Last Updated: Tuesday, 10 May, 2005, 09:53 GMT 10:53 UK
China PC firm aiming for top spot
Lenovo PCs on display in Beijing
Lenovo wants to overtake Dell or Hewlett-Packard
Lenovo, the Chinese firm which completed its purchase of IBM's PC business this month, has told staff it plans to double profits in three years.

Lenovo, now the world's third-biggest PC firm, wants to oust one of the top two, Dell and Hewlett-Packard (HP).

Lenovo bought IBM's PC unit for $1.8bn (931m) and may buy other foreign firms to counter competition in its own market from Dell, HP and Chinese firms.

Lenovo's chief Stephen Ward unveiled the plans in a letter to staff.

Huge market

Mr Ward was formerly general manager of IBM's personal systems unit.

In February, Lenovo posted a profit of HK$327m (223m) for the three months to end-December, not much higher than the HK$325m of the same period a year earlier.

The PC market in China is now the second-largest in the world and is set to grow at a rate of 13% this year.

However, some analysts were sceptical about how easy it would be for Lenovo to double profits.

Marvin Lo, a BNP Paribas analyst, said it could be done if warranty costs were kept under control and margins at the IBM business were raised.

He was less sure that the company could overtake Dell or HP.


SEE ALSO:
IBM profit report shocks market
15 Apr 05 |  Business
Long life promised for laptop PCs
27 Mar 05 |  Technology
IBM to pay $1.1bn for Ascential
14 Mar 05 |  Business
Lenovo's IBM bid gets US go-ahead
09 Mar 05 |  Business
Lenovo: The making of a legend?
08 Dec 04 |  Business


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