[gnulinuxinasia] CHINA: Lenovo to sell US$199 PC in rural China

  • From: "Frederick Noronha [फ़रेदरिक नोरोनया]" <fred@xxxxxxxxxxxxxxx>
  • To: gnulinuxinasia@xxxxxxxxxxxxx
  • Date: Tue, 14 Aug 2007 11:13:52 +0530


Lenovo to sell US$199 PC in rural China
By Joe McDonald, BusinessWeek
Monday, August 06 2007 09:59 AM

Lenovo Group said Friday it will sell a basic personal computer aimed
at China's vast but poor rural market and priced as low as US$199.

Lenovo's announcement follows rival Dell's bid to boost its presence
in China's booming market with the unveiling in March of a low-cost
personal computer meant for novice Chinese users.

Beijing-based Lenovo, which acquired IBM's PC division in 2005, is
expanding abroad but is eager to maintain its dominance in China,
where research firm Gartner says PC sales grew by 23 percent last

"Our focus is to get down to the rural market," said company spokesman Jay Chen.

The new Lenovo unit will include a processor and a keyboard and will
use a buyer's television set as a monitor, Chen said. He said he had
no details on the processor size or other features.

The new PC goes on sale later this year at prices of 1,499 to 2,999
yuan (US$199-US$399), Chen said.

Lenovo is the world's third-largest PC manufacturer, behind U.S.-based
Hewlett Packard Inc. and No. 2 Dell.

Dell, based in Round Rock, Texas, announced in March that it will sell
a basic desktop PC designed for China and priced at US$223-US$515.

Chen denied that Lenovo was responding to Dell's initiative. He said
Lenovo has been selling a low-cost PC loaded with educational and
other software meant for rural Chinese families since 2004.

"It's a natural evolution. We are not responding to our competitors,"
Chen said. "After three years of market development in low-tier
markets we have gained experience and understanding."

Some 800 million people live in China's countryside, where incomes
average about 4,200 yuan (US$560) a year but are rising at an annual
rate of more than 10 percent.

Lenovo said it will set up a rural sales network of 5,000 dealers to
reach farmers and other customers.

On Thursday, Lenovo reported a 12-fold jump in profits in the quarter
ending June 30, with earnings of US$66.8 million on revenues of US$3.9

Joe McDonald of BusinessWeek reported from Beijing.
Frederick Noronha  Journalist http://fn.goa-india.org
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