So how's Lenovo doing two years on from its purchase of IBM's PC division? Contrary to the prevailing orthodoxy that everything China touches turns to gold, it seems that Lenovo is struggling to find growth and profit just like everyone else in the PC business.
Lenovo, formerly known as Legend Computer, did $14.6bn in revenues in its last financial year, about the same amount as Dell does in a quarter.
From being No.3 in the world, behind Dell and HP, Lenovo has slipped to No.4 as Acer overtook it in units sold in Q1 07, according to analysts IDC/Gartner.
In China, Lenovo has a 31 per cent market share, compared to a combined 18 per cent for Dell and HP.
In its US business, Lenovo hopes to break even this year.
In terms of new PC design, in global marketing, in bringing down costs and streamlining logistics, Lenovo is still struggling to find the way ahead.
In what is now a worldwide commodity like the PC, it seems that the China touch is no more, and no less, adept in achieving business success, than anyone else's touch.
While I agree with the points in China Touch Not Golden For Lenovo. - Mannerisms , I think the positive sentiment around at the moment is a concequence of a politically engineered set of circumstances. The demand for consumer credit is still weak and there is no improvement in the housing market. The developed nations are surviving on their politicians ability to just borrow and spend into their countries which is unsustainable. Regards, Millard Pitka.