The Hindu Business Line : Lenovo eyes consumer PC segment in India

CHINESE PC major, Lenovo, which hitherto focussed on the commercial PC business in India, proposes to tap the consumer segment over the next few quarters. The consumer segment accounts for some 33 per cent of the overall PC market in India.

"Though we have not finalised a date as yet, the foray would happen soon," said Mr Rahul Agarwal, General Marketing Manager, Lenovo (India) Pvt Ltd. The company plans to introduce Lenovo branded PCs and notebooks for the consumer segment soon, he said. Currently, Lenovo sells IBMs ThinkPad and ThinkCentre series of notebooks and desktops in India.

Lenovo would utilise the assembly plant in Pondicherry to assemble its own products to cater to the consumer segment. The production capacity of Pondicherry unit could be scaled up from 0.6 million to 1 million units per annum with a minimum modification, Mr Agarwal said.

It has been a year since the merger of IBM's PC business was announced with Lenovo. "The transition has been perfect," Mr Agarwal said adding the company has beaten market growth in India.

According to IDC, the Indian PC market grew sequentially by 11 per cent in July-September quarter of 2005 with shipments totalling 12 lakh. According to IDC, Lenovo's market share stands at 14.8 per cent in the commercial desktop value of shipments by vendor in Q3 2005 in terms of end user revenue and at 28.4 per cent in the commercial notebook value of shipments by vendor in terms of end user revenue for Q3 2005.

Lenovo is also expanding its portfolio of commercial PC business by introducing new products, he said.