With the rupee declining by almost 20 per cent in the last six months, costs for Lenovo have gone up by about 18 per cent.
“The increase in prices has impacted surplus demand. Government contracts have been most affected,” said Mr Amar Babu, Managing Director, Lenovo India. The PC order from Tamil Nadu helped Lenovo record the highest PC shipments in the first quarter of 2012, according to Gartner.
Lenovo's PC market share has grown to 15.8 per cent in Q4 of FY 12 from 4.8 per cent in Q4FY10. At present, the enterprise business makes up about 50 per cent of Lenovo's business in India, 40 per cent comes from the consumer segment and 10 per cent comes from SMBs.
To promote higher growth in its consumer segment, Lenovo India launched its new range of Ultrabooks and All-In-One (AIO) PCs on Tuesday. These laptops are priced between Rs 49,990 and Rs 60,000.
Lenovo has over 1,000 exclusive stores in India.
“There is a huge opportunity in the market. We are increasing our presence in non-metro and tier-four cities as PC penetration is low there,” said Mr Rajesh Thadani, Director, Consumer Business Unit, Lenovo.
Tablets launch soon
“We are planning to introduce tablets by October and the Ideapad Yoga (tablet-ultrabook hybrid) in the second half of this year,” he said. It is also exploring opportunities to introduce smartphones and Android-based TV's soon in India.