Temat: Lenovo moves into consumer PC sector

Lenovo moves into consumer PC sector

By Paul Taylor in New York

Published: January 3 2008

Lenovo is entering the global consumer computer market Thursday with a new range of laptop and desktop machines.

The Chinese PC maker has previously focused on the business market outside China since acquiring the IBM PC business three years ago.

The new machines, which will be sold under the Lenovo IdeaPad and IdeaCentre sub-brands, are aimed at mid to high-tier buyers and their introduction marks a big strategic shift.

Lenovo, which is probably best known outside China for the ThinkPad line of portable PCs, currently ranks number four in the global PC market behind Hewlett-Packard and Dell of the US, and Acer, its rival based in Taiwan.

Since acquiring the loss-making IBM PC business Lenovo’s management has focused on restructuring and streamlining operations. The push into the global consumer PC market reflects the company’s confidence in the progress it has made in restructuring the business, coupled with a perceived opportunity in the worldwide consumer PC market.

According to IDC, the global consumer PC market is expected to grow by an average of nearly 10 per cent annually during the next three years. In 2007, Lenovo accounted for about 4.6 per cent of consumer PC shipments worldwide, with sales focused mainly in the fast-growing domestic Chinese market, where the company also sells a range of consumer electronic products, including mobile phones.

Lenovo IdeaPad notebooks and IdeaCentre desktops will be launched initially in the US, France, Russia, South Africa, India, Australia, Hong Kong, Indonesia, Malaysia, Vietnam, Thailand, China, the Philippines and Singapore.

In the US, the largest and most fiercely competitive laptop PC market, Lenovo will offer a trio of IdeaPad notebooks – the IdeaPad Y510, Y710 and U110 – from $800.

“We are confident we will grow our consumer business by blending innovative technologies like facial recognition with attractive designs to enhance the way people use technology,” said Liu Jun, senior vice-president and president of Lenovo’s consumer business group.

Copyright The Financial Times Limited 2008

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