Lenovo to use stimulus to cash in on consumers, SMEs
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Lenovo to use stimulus to cash in on consumers, SMEs

Lenovo, the world's second-largest computer maker, is focusing on the high-growth consumer and small and medium-sized enterprise markets thanks to the government's economic stimulus scheme.

Tablet sales per quarter will overtake notebook sales by early next year, says Mr Jeerawut.

Jeerawut Wongpimonporn, Lenovo's country general manager, said populist policies such as increasing monthly salary and labour wages are boosting IT spending in the retail and SME segments.

"We expect to see a double-digit increase in computer sales this year, up from a single digit during the past several years," he said.

Sales of computers in the SME market averaged 500,000 units per year. Seventy percent of the total came from desktop computers and the remainder from notebooks, said Mr Jeerawut.

Lenovo is introducing a series of new desktop models and notebooks, the Edge series, to specially serve SMEs.

Mr Jeerawut said this is the first time Lenovo has offered product prices for enterprises with fewer than five employees. The company previously offered corporate prices for companies with 100 to 500 staff.

Lenovo is also widening its distribution channels to modern trade shops to serve the SME market.

He said the company plans to add server and storage production lines to the market soon after its recent collaboration with EMC Corporation.Mr Jeerawut said computers for the retail market is another growth area, though Lenovo is facing many challenges from tablet makers such as Apple and Samsung as well as low-cost Chinese tablets.

Lenovo plans to launch its sleekbook computer in October, a lower-cost thin and light notebook. Weighing 1.4 kilogrammes, the sleekbook would be priced below 25,000 baht.

In the fourth quarter, the company will also roll out its flagship product, the IdeaPad Yoga notebook and ThinPad tablet 2 equipped with Microsoft's Windows 8 operating system.

Mr Jeerawut said by early next year tablet sales per quarter would overtake notebook sales. Notebook sales totalled 700,000 units per quarter, while tablet sales averaged 300,000 units per quarter.

Notebook sales growth averaged 15% this year, compared to 20-40% over the past two years, before tablets entered the market.

Lenovo expects revenue from consumers to comprise 60% of the total this year, up from 50% last year.

Its personal computer market share will reach 15% this year, ranked in the top three, compared with an 8.3% share in the second quarter.

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