Lenovo's Retreat to the China Market

In my July 11 post, I asked if Lenovo's efforts to consolidate its sway in rural China and the domestic market more generally were creating a position from which it would try to compete again in the global market or simply represented a retreat from the global marketplace. Second quarter results are suggest a tentative answer. On the surface, Lenovo appears to be regaining global market share, but the reality is that Lenovo is gaining in China while losing more the global market in Europe and North America (link). As Bruce Einhorn observed recently at his BW blog, Lenovo appears to be sliding back to the very China-oriented market position it had before purchasing IBM's PC division (link).