ALKHOBAR, 9 August 2005 — Lenovo, the new international third-largest personal computing company in the world, is set to make its first public appearance in the Middle East at GITEX 2005. The global company, which completed its $1.75 billion acquisition of IBM’s PC division last May, will bring a wave of new products to the show, including the recently launched ThinkPad X41 Tablet.
“This year’s show is going to be one to remember. Anyone who wants to know anything about Lenovo, its products and how we plan to bring new competition to the region’s PC market will be able to do so at GITEX 2005,” said Imtiaz Ghani, regional manager, Lenovo Middle East, Egypt and Pakistan. “On the Lenovo stand at GITEX, we will show visitors how the new computer company combines the strengths of both IBM and Lenovo and how they can benefit from the unparalleled innovation and heritage of IBM and the manufacturing efficiency and reach of Lenovo.”
Visitors to Lenovo’s stand at GITEX will be able to catch first-hand demonstrations on ThinkVantage technologies in wireless, security, data protection and PC management that are available in nearly all ThinkPad notebooks and ThinkCentre desktops. The stand will highlight some of the latest models from the slim X, T, R and G-series range of ThinkPad notebooks, the full range of ThinkCentre desktops, as well as ThinkVision flat-panel TFT monitors and Think Accessories. The stand will also have a dedicated zone where Lenovo products such as desktops, notebooks and handheld devices, that were part of the company’s portfolio before its acquisition of IBM’s PC division, will be showcased in the Middle East for the very first time.
Lenovo will also have a strong presence at the GITEX Computer Shopper which will run alongside the trade show from Sept. 24-30, at the Dubai Airport Expo. At the Shopper, Lenovo is promising a wide selection of retail promotions designed to offer users great deals on its innovative range of ThinkCentre desktops and ThinkPad notebooks.
“Since the announcement in December 2004 there has been a transition period worldwide. Some countries were selected to be in Wave One for transition into Lenovo. Our office, which is a MEEP (Middle East, Egypt, Pakistan) office, is a Wave Two country. That means the full-fledged operations of the company started here from Aug. 1. The US and Australia were two of the countries in Wave 1. In Central Europe, Middle East, Africa, most of the countries in this region were Wave 2,” remarked Ghani.
While the Lenovo as a company and the Lenovo product range will be introduced at GITEX, it will take a little while longer for Lenovo products to be seen across the region.
“For the moment we are carrying on with the existing product line, ThinkPad notebooks, the full range of ThinkCentre desktops, as well as ThinkVision flat-panel TFT monitors under the Lenovo umbrella. Once the Lenovo products are added to the existing product line after GITEX, our business partners, resellers and end-users will have a wide variety from us from which they can select a product,” Ghani said. “All the business partners in the entire region, which is Middle East, Egypt and Pakistan, who were selling IBM products before, will continue selling Lenovo products. All the existing contracts will be automatically renewed and they have been renewed.”
There are many differences between Lenovo and IBM products, which is why the companies were such a good fit in the acquisition. The bottom line is that in the MEEP region strategies must be created to hold existing IBM customers while attracting customers interested in what Lenovo can offer consumers.
“IBM is into the corporate market where end-users perceive IBM products as very reliable and high quality. Lenovo products, on the other hand, are very strong in the consumer retail market, although not yet in this region,” Ghani explained. “The channel mapping and product announcements are under intensive planning right now. There are many considerations on our entry into different markets. Definitely though existing business partners will sell IBM and Lenovo products in the future. We are reassessing the market though, especially in consumer retail where we’ll be looking at new channels, new segments and targets. Execution of all our plans will begin immediately after GITEX. We will especially be targeting the home and youth market at that time.”
In Saudi Arabia the market is extremely price sensitive but also brand conscious. Consumers tend to perceive goods from Japan, Europe and the US as higher quality that those from China. The Saudi market often carries the exact same goods manufactured in two different countries. For example, take the same model of television manufactured in Malaysia and Japan. The Japanese manufactured set will attract a higher price in the Saudi market. Will Saudi consumers think well of computers made in China when they used to look at IBM as an American brand?
“Sixty percent of IBM products globally were already assembled in China before the acquisition,” commented Ghani. “For our region, MEEP, we were selling those products that were assembled and manufactured at IBM’s China plants. All the ThinkPads coming to this region for the last two years were made in China and they were very well received and accepted by our business partners and end-users. We believe that for the end-users the fact that our manufacturing is in China won’t make any difference.”
What is certain is that Lenovo is trying to give consumers and businesses confidence in the Lenovo brand, while gearing up for major regional growth.
“All the PC staff that had been working for IBM are now working for Lenovo,” Ghani said. “We are growing in this region and have big investment plans for the region as well. We have selected a few countries where we will be moving very aggressively with our Lenovo product lines. When I say Lenovo I mean IBM and Lenovo together. Just as our competitors are entering into the market in consumer retail, we will be doing the same as well with out new product lines with a big noise and with the requirements and demands of the market in mind. As for our warranties, any existing products that IBM is selling at the moment are covered by an international warranty. The same will be the case for the Lenovo branded machines. In the Lenovo transition phase both the companies have agreed that for the next five years, warranties will be carried out by IBM. Customers buying Lenovo or IBM products in the future, they can rest assured that the warranties and service levels throughout the world remain the same. We hope this will give all end-users confidence in our products.”
Initially, Lenovo plans to introduce the company to the region first as a leader in the PC segment. Eventually they hope to bring in other Lenovo products that are not directly related to their PCs. Lenovo executives will be coming to GITEX from the Europe, Middle East and Africa regional headquarters as well as from China and the USA to officially launch Lenovo as a company in MEEP. So, everyone interested in meeting the “new kid on the block,” should drop by the Lenovo stand at GITEX in Hall 3 of the Dubai World Trade Centre (DWTC).
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