Bangalore: 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% in the current fiscal year on a rebound in consumer and corporate demand, Amar Babu, managing director of Lenovo India, told Reuters on Wednesday.
Lenovo’s share in the Indian market rose to 7.2% 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% in Asia’s third-largest economy.
“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% in the coming years, said customers were returning after the industry went through one of its worst years during the recession.
Rising consumer confidence and a revival in IT spending saw personal computer sales rising 33% in India during the March quarter, IDC has said.
“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.