Hit by the tumbling rupee to the dollar, Lenovo India has initiated a flat three to five per cent price hike (between Rs 1,000 and Rs 1,500) across its products basket. The hike has come into effect from June 1.
Lenovo India, as per an IDC report, is the market leader in the laptop and PC segment. The company did not, however, give India figures. Lenovo India is a subsidiary of Lenovo Corporation.
According to Mr Rajesh Thadani, Director-Consumer BU, Lenovo, primary dependence on imports and the recent fall in rupee against Greenback has affected its margins by nearly 10 per cent. The rupee started moving upwards from Rs 45 a dollar in August, 2011, to an average of Rs. 54.38 in May 2012. The average in June so far is Rs 55.46.
“We have not initiated the entire hike on users. But we did pass on some of the costs,” he told
Revision
Currently, hedged at the “present market rates”, the company may consider a further revision in prices if rupee tumbles further. The company, according to Mr Thadani, is currently hedged at Rs 55 “for the quarter” (June).
New Launches
Lenovo India, meanwhile, will focus on the tablet PC segment in the country. While a decision has already been taken to phase out its existing tablets range, three new series are about to be introduced during September-October period this year. Lenovo had launched its “Ideapad” tablets in September last season. The tablets were priced between Rs 20,000 and Rs 30,000.
According to Mr Thadani, tablet PCs will be introduced in the 5'', 9'' and 10'' segments. He, however, did not give a price range for the new offerings.
The company, he said, would soon take a decision on the feasibility of introduction of smartphones (already there in China) and smart TVs here.