Lenovo, the world’s No. 2 PC manufacturer, is betting on four Windows-based notebook-tablet convertible devices to win market share from Apple and Samsung Electronics , even as sales in the product segment decline.

The IdeaPad Yoga is a multimode notebook available in two versions with 11.6- or 13.3-inch touch screens that let users flip and fold the keyboard to convert the device to a tablet, said Peter Hortensius, president of Lenovo’s product group. The larger device goes on sale in the U.S. on Oct. 26, followed by the smaller one in December, he said.

Chief Executive Officer Yang Yuanqing has set his sights on dominating in mobile devices such as smartphones and tablets that are eating into personal-computer sales, he said in August. Lenovo is close to overtaking leader Hewlett-Packard Co. in global PC shipments, with its second-quarter market share rising to 14.7 percent, almost matching the U.S. company’s 14.9 percent, according to Gartner Inc.

“We view these products as a key part of gaining share,” Hortensius said of the convertible tablets in a telephone interview. “The real key to growth is providing useful products for customers, and we think these fit that category very well.”

Sales of all convertible tablets based on Microsoft Corp.’s Windows fell to 150,000 in the second quarter from 170,000 three months earlier, and more than 200,000 in every quarter of 2011, said Jay Chou, a senior research analyst at IDC. That’s less than 1 percent of total PC shipments, he said.

Apple shipped about 17 million tablets in the second quarter, Chou said.

Highlights from the models Lenovo introduced Tuesday with descriptions provided by Lenovo:

  • “IdeaPad Yoga 13 Flexes Into Totally Unique Poses”

“The IdeaPad Yoga’s revolutionary hinge allows it to uniquely move 360° and fold from laptop to tablet in one simple motion. As one of the world’s first multi-mode Ultrabooks, Yoga 13 provides a high level of flexibility between work and play without compromises. Infused with powerful 3rd generation Intel® Core™ processors and running Windows 8, Yoga 13 provides laptop-grade performance to get work done all day without slowing down with its super slim 16.9 mm frame and eight hours of battery life.”

  • “IdeaTab Lynx Connects to Digital Life”

“The IdeaTab Lynx is one of the first Windows 8-based tablets with the latest dual core Intel® Atom™ processor. This feather light 11.6-in tablet caters to the mobile individual who wants to combine fun and work: users can interact with a variety of Windows 8 apps via its multi-touch screen when on the go or they can connect it to its keyboard for a full-function PC experience that includes writing documents in Microsoft Word, creating presentations in PowerPoint and building spreadsheets in Excel. With Lynx, users can leave the power plug behind thanks to its incredible 16 hours of battery life (with optional base), and they can enjoy cinema-quality sound with Dolby Home Theatre® and easily connect to printers, hard drives and other accessories with a full size USB port when attached to the base.”

  • “ThinkPad Twist Puts New Spin on Small Business Computing”

“ThinkPad Twist makes it easy to choose one affordable device that can do it all. Use it as a full-performance Ultrabook, and then twist the top to switch to a convertible tablet. The 12.5-in ThinkPad Twist gives professionals the technologies they need for both their business and personal computing. For exceptional business-class productivity, ThinkPad Twist packages up to 3rd generation IntelCore i7 processors, up to Windows 8 Pro, optional 3G3, large storage up to 500 GB or 128 GB SSD and the ThinkPad-brand’s legendary keyboard and quality and reliability features. Users can work for hours with nearly all-day battery life and tablet-like quick resume from standby. This powerful machine also includes dedicated software tools specifically for small business including Lenovo Solutions for Small Business powered by Intel Small Business Advantage and Lenovo Cloud Storage by SugarSync.”

  • “IdeaPad Yoga 11 Balances Power and Mobility”

“Yoga 13’s smaller screen size counterpart, Yoga 11, is the world’s slimmest multi-mode PC, measuring just 15.6 mm. Yoga 11’s slim design, 11.6-in screen and long 13 hour battery life make it a great convertible for mobility. Equipped with NVIDIA Tegra 3 – the world’s only quad-core processor for Windows RT – Yoga 11 lets users watch HD movies, play games, get connected and stay productive with Microsoft Office applications virtually all day long. As an added bonus, both Yoga 13 and 11 can be used in completely new ways: convert them into a Stand1 by flipping the keyboard behind the screen to comfortably watch movies or view pictures up close, or bend them upright like a Tent2 to bring games or video chats to life.”

‘Underpowered Laptop’

Dennis Lam, a Hong Kong-based analyst at DBS Vickers, said he’s not convinced convertible tablets will make sense for most users.
“At the end, you end up with an underpowered laptop, and a not-so-portable tablet hybrid,” Lam said in an e-mail yesterday. “If I wanted the convenience, I would stick with a tablet. If I wanted to do work with spreadsheet, I would stick with an ultrabook. The added option of tablet plus keyboard completely defeats the purpose of a tablet in the first place.”

Lenovo fell 0.8 percent to close at HK$6.17 in Hong Kong trading,the lowest level since Sept. 12. The shares have gained 19 percent this year, compared with a 13 percent advance for the benchmark Hang Seng Index.

New Windows

IDC’s Chou said the new version of Windows for touch computers will be a catalyst, and Lenovo has found part of the market that it can address.

Both versions of Yoga and two other convertibles, the IdeaTab Lynx and the ThinkPad Twist, run Microsoft’s new Windows 8/RT operating system for mobile devices, Lenovo’s Hortensius said.

Yoga’s convertibility derives from a 360-degree, dual-hinge flip design, Lenovo said when announcing the device in January. The 13.3-inch version is powered by an Intel Corp. Core processor and carries a suggested retail price of $1,099, Hortensius said.
Lenovo still trails Apple and Samsung by a wide margin in the race for tablet users. In the second quarter, Lenovo was sixth in global tablet market share, with 1.4 percent, behind market leaders Apple, with 65 percent, and Samsung, with 9 percent, according to researcher IDC.

“Tablets are a must-do and the U.S. market is an important market” for the devices, Vincent Chen, an analyst at Yuanta Securities Co. in Taipei, said in an e-mail yesterday. “I’m just not sure if Lenovo can see quick success.”

Hortensius said Lenovo expects to sell “quite a few” of the devices over the next year. He declined to provide a unit sales forecast.
“We’re pretty bullish on the outlook for convertibles,” Hortensius said. “In the marketplace you see a lot of users of tablets, and a lot of users of clamshell notebooks. People still buy a lot of both kinds of products. We see a lot of room for products that allow you to do both.”

Lenovo operates its executive headquarters in Morrisville.

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