Lenovo Jumps Into Global PC Market with Branded Product Line

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Digital Journal — In a move bound to shake up the PC industry, Lenovo introduced its first Lenovo-branded desktop and notebook PCs to be sold outside its stronghold in China. By targeting the small- and medium-sized business market, Lenovo is making its first major expansion since the company’s acquisition of IBM’s PC business last May.

At a press conference in Toronto — one of many global cities unveiling the new units — Lenovo Canada explained how the products will differentiate themselves from others that glut the market. “Lenovo will offer the new PCs as the smart choice for today’s most savvy entrepreneurs, priced to fit the budgets and computing needs of even the smallest firms,” said Janice Dawes, business unit executive of marketing and strategy for Lenovo Canada.

The Lenovo 3000 product line, displayed in the Lenovo Canada boardroom amidst the company’s new print ads, departs from the trusted ThinkPad brand acquired from the IBM deal. The Lenovo C Series notebooks, for example, are coated in silver rather than the ThinkPad’s trademark black. The company will continue to product ThinkPads and ThinkCentres, but the new Lenovo PCs veer from IBM’s reliance on Intel chips by featuring both Intel and AMD chips.

Janice Dawes and Ryan Wires of Lenovo Canada celebrate the global launch of Lenovo-branded notebook and desktop PCs. — Photo by Digital Journal

Turning to the products’ specs, Lenovo is making certain users aren’t disappointed. The notebooks feature processors running at up to 1.8GHz with a hard drive maxing out at 100MB. The 6-lb. notebooks integrate Wi-Fi, a multimedia card readers and stereo speakers with a built-in microphone. A lithium-ion battery offers up to five hours of battery life.

The Lenovo J100 and J105 desktop PCs sport an Intel Pentium or Celeron processor, with up to 250GB hard disk drive. Six USB ports, side-access air ventilation and a DVD recordable drive round out the PCs. Strangely, these desktops also include a 3.5-inch floppy disk drive — an odd choice considering the archaic technology is virtually useless in the age of USB keys, email and CDs.

Most intriguing about Lenovo’s announcement is the pricing. The notebook PCs start at $799 and the desktops start at $399 (Canadian). As the new player in the competitive PC market, Lenovo is trying to brand itself as the inexpensive but reliable option for users hunting for a comprehensive system.

But will the company expand outside the business demographic to offer consumers a product line?

“We need to first understand the marketplace,” said Dawes, “and then we’ll make a decision on which products will move where.” She speculated that Lenovo will not introduce consumer products anytime this year.

According to research firm IDC, Lenovo ranked behind No. 1 Dell and No. 2 Hewlett-Packard in worldwide PC market share in 2005. The brand is increasingly popular in China, where PCs are sold under the Lenovo name.

Ryan Wires, national sales specialist for Lenovo Canada, also mentioned more product lines will be announced later this year. The N100 15-inch screen notebooks will hit the market in March, while the V100 widescreen notebooks will start shipping in June.

Public reaction of Lenovo’s announcement remains to be seen, but its impact will undoubtedly ripple through the business community and inevitably through the customer landscape. After all, a powerful notebook PC priced under $1,000 is still exciting for the cost-conscious consumer, even if the brand is still only emerging.

www.lenovo.com