Computers & Laptops

Lenovo bets big on convertible devices

TE Raja Simhan Chennai | Updated on January 10, 2018

Upbeat Rajesh Thadani, Head and ED, Consumer and E-Commerce, Lenovo (India) - Photo: Bijoy Ghosh

Company expects 20% growth in ‘All-in-One’ desktop category

Demand for personal computers is flat in India.However, new form factor PCs like convertible (360 degree machine used as both notebook and tablet), thin and light and gaming are becoming key drivers for the next level of growth in the industry, according to Rajesh Thadani, Head and ED, Consumer and E-commerce, Lenovo (India) Pvt Ltd.

The new form factors — PCs that are ultra-sleek, light weight with powerful computing capability — account for 10 per cent of the total PC market. Nearly 80 per cent of this market is notebook and the rest is desktop. The notebook market is still flat while desktop is declining and emerging form factors are growing, he told BusinessLine.

At present, nearly 5 per cent of the PC market is of convertible and this segment is growing at over 100 per cent, he said without giving any data.

For instance, Lenovo’s convertible device Yoga is an all-in-one device that can be used as notebook, tablet, gaming and watch video.

Consumers no longer want a traditional notebook but need a versatile device with various functionalities, and Yoga offers such an option, he said.

Lenovo’s convertible products with price ranging from ₹40,000 to ₹1 lakh are niche products. Consumers are willing to pay a premium to buy a technology that gives them good functionalities and features. In the last couple of years, the demand for premium products above ₹50,000 has more than doubled to nearly 13 per cent of the total PC market, he said.

“While bulk of the market is still the traditional notebook space, we are seeing this trend that will become big in future,” he said.

GST effect

Thadani said demand for desktop PC is declining but GST could change the market dynamics. People have outsourced their accounting and taxation requirements to accountants.

However, in future they will need a PC and that is when demand for desktop PC will pick up significantly. “We are already seeing such signs. While for the industry, the desktop market is going down, for Lenovo it is growing especially in the All-in-One category,” he said. “We are looking at 20 per cent growth,” he said.

Lenovo will add nearly 100 exclusive stores to end the financial year with nearly 700 such stores.

In addition, the company sells its products through nearly 4,500 multi-brand retail shops such as Croma, Reliance Digital and Girias and in smaller shops, he said.

Published on September 07, 2017

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