According to the NY Times story, industry observers where anticipating a much larger loss due to the IBM merger and the job cutting that comes with it, however the company did manage to turn a profit. That is not to say Lenovo is not struggling to gain market share and compete with Dell and HP, its two biggest competitors, let's not forget the PC market in general is slowing down and it will take tremendous amount of effort for companies to remain competitive in the years to come.
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