Lenovo struggling to meet global challenge

<P>One year after it famously acquired IBM's PC division, Lenovo is finding that the global PC market is not the most welcoming of environments.</P> <P><br><br><BR>The world's third-largest PC-maker faces pressure on its margins as it continues to lose market share to rivals Dell and HP. Its 2006 fiscal year results saw profit plunging to US$22.2 million from $144 million a year earlier.</P> <P><br><br><BR>Adding to the gloom was a recent US State Department decision to remove Lenovo PCs from any secure network, because of concerns over Chinese spying. </P> <P><br><br><BR>While the US decision has been widely condemned, it points to continuing suspicion over China Inc in that country - despite the heady acclaim one year earlier when Lenovo completed the historic IBM acquisition.</P> <P> </P> <P> </P> <P> </P>