The Indian PC Market on the Rise

In 2004, IBM sold off its personal computing business to Lenovo of China. Lenovo has been quite successful in the Chinese Personal Computer market and IBM expects Lenovo to repeat the same in India also. With the acquisition of IBM's computing business, Lenovo has become the world's third largest PC manufacturer. The Chinese major Lenovo, with revenues of $13bn, considers India as one of the most lucrative markets and it hopes to cash in on the rising demand for branded PCs in the Indian market. It was decided that the IBM logo which is being used for the current product line be continued for the next five years. But, at the same time, it is hopeful of building its own identity. As Neeraj Sharma, Managing Director, Lenovo (South Asia) explains, "The new Lenovo will change the personal computing game for enterprises and consumers." Until recently, IBM limited the sales of its PCs to corporates. But, Lenovo plans to explore the home PC market using IBM's identity, a business horizon left untapped by IBM. Thus, Lenovo wants to become a tough competitor for not only HCL and HP, but even for the low-cost assemblers.