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Electronics Production | February 24, 2006

Lenovo is world's third largest PC maker

Chinese PC maker Lenovo, which bought IBM's PC-division, will according to Jonathan Cassell at iSuppli become the worlds largest PC maker in 2005.
It may have been the Year of the Rooster on the Chinese calendar, but 2005 was the Year of Lenovo in the computer market, as the company jumped up four positions to become the world's third-largest PC maker, according to a preliminary ranking from iSuppli Corp.

"Reaping the benefits of strong market conditions and its acquisition of IBM's PC division, Lenovo of China increased its PC shipments to 13.9 million units in 2005, up 222.9 percent from 4.3 million in
2004," said Matthew Wilkins, senior analyst with iSuppli. "The strong surge in shipments caused Lenovo to rise to the third rank among global PC sellers, up from seventh in 2004. The company finished the year with a market share of 6.4 percent," Wilkins added.

PC market generates surprising growth. Global PC shipments rose to 219.2 million units in 2005, up 14.7 percent from 191.2 million in 2004, according to iSuppli's preliminary estimate. This exceeded the 13.2 percent rise in 2004, surprising many industry watchers and pundits who had expected an industry slowdown. This vigorous PC growth was driven by several factors, including the rise of notebooks to become a more significant portion of the global PC market. Desktop PC sales also were given a shot in the arm by the arrival of multi-core microprocessors. Intel Corp. and Advanced Micro Devices Inc. in 2005 expanded their battle for microprocessor supremacy into the multi-core realm, leading to accelerated innovation and more competitive pricing.

In other preliminary 2005 rankings, Dell Inc. and Hewlett-Packard Co. maintained their number-one and number-two positions, accounting for 17.2 and 14.7 percent of 2005 PC shipments respectively. However the gap between the two companies grew to 5.5 million units in 2005, up from 3.7 million in 2004.

Following Lenovo at number three, Acer Inc. and Fujitsu Siemens Computers rounded out the top five, with shipments of 9.6 and 8 million units respectively.

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