With revenues from personal computers (PC) shrinking, Lenovo is increasingly looking to make up with higher smartphone sales.
The company, which wants to sell one million smartphones in India this year, is planning to bring in devices priced below Rs 5,000.
Nick Reynolds, Executive Director – Worldwide Product Marketing, Lenovo, told Business Line: “We are watching the space because we know there are people who are upgrading from feature phones to smartphones, and that is a big trend in emerging markets today.”
FALLING PC BUSINESS
He said the company is looking at various price points for its smartphones. Lenovo sells around 60 different models in China and as its business grows here, it will bring in more models. According to independent research and marketing firm IDC, globally 349 million PCs were shipped in 2012 compared with 363 million in 2011. It expects the numbers to go down further by around 8 per cent this year.
Though the India numbers grew by 3.5 per cent to 11 million PCs in 2012 compared with 2011, the market was driven by special projects such as those for Electronics Corporation of Tamil Nadu and a spurt in consumer demand for notebooks.
Lenovo said that as the PC market has been a challenge it would drive multi-mode devices such as hybrid and touch devices.
TAKING ON HEAVYWEIGHTS
Reynolds said Lenovo will make a mark in the smartphones segment, just as it did with its PCs. But Lenovo’s challenge is to compete with players such as Samsung and Nokia that have been in the phone segment since much earlier.
To increase the visibility of Lenovo products, especially phones and tablets, Lenovo India will invest good money in advertising and marketing.
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