BEIJING: Chinese PC maker Lenovo is launching a low cost personal computer targeting the rural populace of China. The PC, which is expected to go on sale later in 2007, will be priced in the range of $199 to $399.
Lenovo, the third largest PC maker in the world after HP and Dell, said the new PCs will make use of the buyers' television sets as monitors. It added the launch is part of the company's plan to gain greater market share in China by reaching beyond the urban population. The plan includes, besides low cost PCs, introduction of several agricultural software applications and setting up an effective dealer network in the small towns of the country.
The company had already launched a campaign, called YuanMeng, under which it said it has already sold four million computers in rural areas.
The announcement follows publication of the results of the company for the quarter ended 30 June. The company reported a 12-fold increase in its profit at $66.8 million on revenue of $3.9 billion. The company also saw a 30 per cent increase in PC shipments to domestic Chinese markets.
Lenovo had acquired IBM PC business in 2005 and since then it had been making sustained efforts to become profitable.
In announcing cheaper PCs, the company is taking on the proponents of One Laptop Per Child (OLPC) project and even chipmaker Intel, which is also planning to come out with a low cost PC, both targeting the developing world. OLPC's laptop is expected to cost $178 and Intel's desktop $225.
Dell too has announced earlier it will introduce a desktop system targeting users in China at a price of $223 to $515.
A Lenovo spokesperson said the company is not responding to competitors but it is a natural evolution. It has gained experience and understanding after three years of market experience, he added.
The company intends to set up a rural sales network comprising some 5,000 dealers.
