Feeds

Lenovo ups in-house notebook production

It's all about control...

Secure remote control for conventional and virtual desktops

It could be sweaty palm time for Taiwan’s ODMs after reports emerged that Lenovo is set to step up in-house production of its notebooks and PCs.

The Chinese hardware giant is planning new production lines in Japan and Brazil as well as at its LCFC joint venture with Compal Electronics in northern China, Digitimes reported.

Industry sources told the Taiwan-based IT paper that LCFC would begin production of 300,000 PCs per month by the end of the year, building to an annual target of 10 million.

The move is apparently drive by a desire to control component supplies in a more flexible manner, keep production costs down and tighten control over shipment schedules. At the moment, around 85 per cent of its notebooks are outsourced, mainly to Compal and Wistron.

Having greater control over the production of its kit would appear to make sense for Lenovo, especially given the caution in the global PC market at the moment.

Gartner’s latest sales stats for Q2 showed a year-on-year decline in the US of 5.7 per cent, while EMEA sales grew 1.9 per cent and Asia Pacific climbed 2 per cent.

Despite closing in on HP’s position as global number one, Lenovo has to beware of producing more inventory than the market is demanding, a trap that Acer fell into last year to its cost, according to Gartner.

It remains to be seen whether Lenovo’s decision will hugely impact the health of Taiwan’s ODM industry, which accounts for around 90 per cent of the world's notebooks.

Although the firm shifted 12.8m units in Q2, increasing its market share to 14.7 per cent, there are obviously plenty more fish in the sea.

In fact, if Lenovo is to bring more of its production in-house, it would be travelling in the opposite strategic direction to Samsung, which has begun outsourcing notebook production for the first time – Compal again the lucky ODM.

Lenovo could not immediately be reached for comment. ®

New hybrid storage solutions

More from The Register

next story
Apple iPhone 6: Missing sapphire glass screen FAIL explained
They just cannae do it in time, says analyst
Half a BILLION in the making: Bungie's Destiny reviewed
It feels very familiar - but it's still good
Oh noes, fanbois! iPhone 6 Plus shipments 'DELAYED' in the UK
Is EMBIGGENED Apple mobile REALLY that popular?
Apple's big bang: iPhone 6, ANOTHER iPhone 6 Plus and WATCH OUT
Let's >sigh< see what Cupertino has been up to for the past year
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's SNEAKY plan: COPY ANDROID. Hello iPhone 6, Watch
Sizes, prices and all – but not for the wrist-o-puter
Get your Indian Landfill Android One handsets - they're only SIXTY QUID
Cheap and deafening mobes for the subcontinental masses
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.