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By | Kelly Fiveash 26th March 2009 12:25

Lenovo splits to cover domestic, emerging markets

Pins hopes on China

Lenovo has divided its business into new units to allow China’s largest computer vendor to slice and dice its products for developed countries and emerging markets.

The firm said in a statement yesterday that it made the internal rejig to replace its current regional breakdown to allow Lenovo’s two new divisions to pitch products at different target markets.

Lenovo - like many of its rivals in the PC manufacturing game - has seen sales drop as the recession continues to bite.

The latest shake-up at the Beijing-based firm comes just a month after Liu Chuanzhi was reinstated as Lenovo’s chairman after the company saw third quarter sales slip more than 20 per cent to $3.6bn. In January Yang Yuanqing replaced William Amelio as CEO.

Effectively, Lenovo’s latest reshuffle underlines its clear intention to batten down the hatches and concentrate on emerging countries and its own domestic market where the company is being handed government subsidies for computer purchases in rural areas, according to Bloomberg.

Last month the computer maker commenced with around 550 job cuts across Europe, after its latest earnings showed shipment numbers had dropped faster than the industry average in every market except China. ®

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