The Lenovo Group will launch a line of low-cost desktops and laptops, the 3000-series computers, to compete for market share in the SMB (small and medium-size business) market with established names such as Dell and Hewlett-Packard. Analysts predict strong growth for the SMB market in 2006 and 2007, so even without the Lenovo move, big providers like Dell and HP will have to fend off entries from smaller firms like Acer, Sony, and Toshiba.
Lenovo already has strong penetration in the Chinese consumer PC market, and it sees its new products as a way to reach U.S. SMB and consumer buyers, said Richard Shim, a senior research analyst for IDC, in San Mateo, California. "Consumers want the latest and greatest technologies, while SMBs rely on their computers for competitive reasons, not just entertainment. Consumers might accept some problems because it's for their personal use; but if it's your bread and butter, it had better work right out of the box," Shim said.
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