The latest research report released by Strategy Analytics pointed out that due to external political and economic factors putting pressure on Lenovo's main competitor Huawei, Lenovo's tablet shipments in Q4 2019 increased by 8% year-on-year to 2.5 million units, and its market share increased by 0.9 percentage points to 5.2%. The Sino-US trade war has put pressure on Huawei, and Amazon has pulled demand forward from this holiday season due to its successful "Prime Day" promotion in mid-July. Using various methods to attract money indicates that the tablet market is still consolidating - the tablet market size in 2019 shrank by 7% compared with 2018. Lenovo's business grew in all regions except Asia Pacific, where Huawei squeezed out many competitors in China. Lenovo maintains a good portfolio of low-priced Android tablets to complement its mid-range Windows detachable 2-in-1 tablet business, but faces the same strong headwinds as other vendors in its Android business. Trade restrictions on Huawei have had a positive impact on Lenovo's tablet business; at the same time, its products themselves are also remarkable, such as Lenovo's new Smart Tab M10 and P10 equipped with a dock, so that the product can also be used as an Alexa-enabled smart screen. Bold innovations such as the ThinkPad X1 Fold foldable PC/tablet to be launched in mid-2020 will also allow Lenovo to stand out from the competition. Eric Smith, Director of Connected Computing Devices, said: “Huawei’s focus has shifted to the domestic Chinese market and sold old inventory in EMEA and Asia (excluding China). This pattern will intensify until the US-China trade war reaches a state of detente. Although there are positive signs of the Phase 1 trade agreement signed in January 2020, tariffs and US component/software supply restrictions remain and will likely continue until the US presidential election in November 2020.” Chirag Upadhyay, Senior Research Analyst at Strategy Analytics, added: “Detachable tablets are experiencing a disappointing commercial refresh as Windows mobile computing demand now favours premium thin-and-light laptops. To complicate matters, most Windows detachable 2-in-1 vendors specialise in higher-margin premium products for enterprise users, but the crowded market cannot allow all vendors to grow, especially as Apple aggressively competes in this price segment with its iPad Pro and iPad Air (with keyboard). Despite Apple’s newfound competitiveness, tablet shipments fell 7% in Q4 2019 as demand for the iPad Pro dropped sharply during the holiday season.” |
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