Lenovo Tablets March into India to compete in Apple's Samsung

Lenovo plans to launch consumer and business tablet computers in India in the next three months, hoping to increase its market share in the country where Internet usage is increasing.

Lenovo’s tablet will join the ranks of Apple’s iPad and Samsung’s Galaxy Tab. The latter two companies are currently facing fierce competition from local Indian companies that bring low-priced versions of their equipment to this highly price-sensitive market.

Lenovo released three tablets in July of this year. The IdeaPad Tablet K1 is for consumers, the ThinkPad Tablet is for business users, and the IdeaPad Tablet P1 is for home and office use.

Amar Babu R, general manager of Lenovo Group India subsidiary. K recently told Dow Jones Newswires that the company is seeking permission from the Indian government for sales. In India, government permits must be obtained before all wireless products begin to be sold.

With the launch of third-generation telephone services and wireless broadband networks by telecommunications service providers, the Internet penetration rate in India is rapidly increasing. According to current statistics, the number of Internet users in India is between 80 million and 100 million, compared with 71 million in 2009.

In the global market, Lenovo's tablet starts at $499, which is comparable to the iPad. Babu revealed that Lenovo's tablet prices in India will remain the same.

Some analysts expect that many Indians, especially in rural areas, will buy tablet computers instead of laptops and desktop computers to connect to the Internet, but Babu has different views. He said: "The tablet is a consumer device. You need the PC to create content."

In terms of shipments, Lenovo is China's largest PC maker, but it trails Dell, Acer and HP in India. According to research firm IDC, Lenovo only has a 10.8% PC market share in India.

Babu said Lenovo will invest heavily in brands and advertising campaigns and hopes to gain 15% to 17% market share in India, becoming the largest PC maker in the region. He declined to disclose the timetable for reaching this goal.

According to IDC, Lenovo’s market share in India increased by 3.6 percentage points in the April-June quarter. Babu said he expects this trend to continue in the July-September quarter.