Lenovo hope to regain its market share after buying majority stake in Fujitsu PCs.
As quarterly revenues increase Lenovo hopes to continue this trend by investing in over a 50% stake in Fujitsu’s PC unit, despite the market dwindling.
Following it’s small but significant 5% revenue growth from $11.2bn to $11.8bn, Chinese PC maker Lenovo hopes to increase these figures further after taking a 51% stake in Fujitsu’s PC division for $157m, to increase its market share and PC sales.
Lenovo and Fujitsu will work together alongside Development Bank of Japan to strategically look into research and development, design, manufacturing and sales of client computing devices for the worldwide PC market.
Computers and laptops produced from the joint venture will be retailed under Fujitsu’s brand to corporate customers across the globe, either through direct sales or via salesmen in the distribution channel. Across Japan, the pair will sell PC products to customers via retail shops and its individual website.
Although well known for its computers, China’s largest PC maker’s leading position in the market had been taken over by HP in the last year.
Therefore, despite Lenovo’s increased revenue being welcomed by the company, the Chinese company hopes the purchase in Fujitsu will give them a chance to regain some of its market share.
PC sales have ceased to grow at the same rate as before due to customers choosing to buy smartphones and mobile devices over PCs. However tapping into Fujitsu’s established company gives Lenovo the opportunity to appeal to other customers and divisions.
Despite the market dwindling, Yang Yuanqing Lenovo Chairm and and CEO said: “PC is still the core of Lenovo. It is still a very decent market; commercial customers will still use PC. I think it is worth investing in this area.”
Fujitsu released its laptop and desktop element of the digital business two years ago, to get rid of parts of the company ceasing to make money and now Lenovo’s investment hopes to continue this further.
According to Fujitsu, the financial transaction of the sale is expected to be closed in the first fiscal quarter of 2018.