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Lenovo sees double-digit India market share

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CIOL Bureau
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BANGALORE, INDIA: Lenovo expects to get double-digit share in India's computer market soon, its local unit head said, as the world's No. 4 PC brand bets on emerging markets to fuel its growth. China's Lenovo sees its share in India's PC market rising by more than 2.5 percent in the current fiscal year on a rebound in consumer and corporate demand, Amar Babu, managing director of Lenovo India, told Reuters on Wednesday.

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Lenovo's share in the Indian market rose to 7.2 percent in the three months ended March, according to research firm IDC, which ranked the firm No. 5, after Hewlett-Packard, Dell, Acer and HCL Infosystems.

In the same period last year, Lenovo's market share was 4.7 percent in Asia's third-largest economy.

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"The first goal post is to get to a double-digit market share," Babu said. He declined to give details.

Lenovo has tried to return to its roots as an emerging markets specialist, after it struggled to integrate Western-focused assets it acquired with the 2005 purchase of IBM's PC business.

Babu, who expects the Indian PC market to grow 30-40 percent in the coming years, said customers were returning after the industry went through one of its worst years during the recession.

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Rising consumer confidence and a revival in IT spending saw personal computer sales rising 33 percent in India during the March quarter, IDC has said.

Also read: 'Global IT spend to touch $3.4 trillion in 2010'

"However, volumes of today have not gone back to the pre-slowdown days. I think there is a lot of opportunity," Babu said. "India is a very strong IT story."

Last month, Lenovo posted a lower-than-expected quarterly profit, hurt by shrinking margins.

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