Bright Idea? Lenovo Launches Consumer Effort with ‘Idea’ Product Lines

Morrisville, N.C. — Lenovo is rolling out six new computer models – three laptops and three PCs – as part of its global strategy to increase sales to consumers.

The company, which bought IBM’s personal computing division in 2005, has been laying the groundwork for its consumer-focused efforts over the past several months. In addition to creating a new consumer business unit, the world’s No. 3 PC manufacturer is also building new facilities, such as a plant in Poland and a distribution center in the Triad.

The IdeaPad notebooks and IdeaCentre PCs will be unveiled at the Consumer Electronics Show next week in Las Vegas.

"This is a big step," Roger Kay, president of market research firm Endpoint Technologies Associates, told Cnet. "If you're not a player in consumer these days, you're not a player."

In an attempt to set IdeaPads apart from competitors, Lenovo is offering the machines in blue, red or black finishes and textured covers.

The names for the products also further shift Lenovo away from its IBM heritage of ThinkPads and ThinkCentre PCs. Lenovo dispensed with IBM logos on many of its products late last year as part of a plan to develop an identity separate from Big Blue.

"This move is very important in the long run for us to meet our global aspirations," Deepak Advani, Lenovo’s chief marketing officer, told Cnet. "The ThinkPad is the gold standard in business notebooks, and it does help build the global brand, but with the consumer strategy we can turbocharge it."

Jack Tse, an analyst at Bear Stearns in Hong Kong, told Bloomberg he liked Lenovo’s move.

"Lenovo is definitely going in the right direction, as notebooks are the fastest-growing segment in the PC market, which is mainly driven by consumers," he said.

IBM ceased targeting consumers long before it sold the PC unit, which was largely based in the Triangle, to Lenovo. Lenovo’s global headquarters are in Morrisville, but most of its operations are in China, where the company was born more than two decades ago.

Lenovo is targeting the U.S., France, Russia, South Africa, India, Australia, Hong Kong and several Asian countries with its consumer effort. Lenovo is locked in a tight race with Acer for third place in global PC sales behind HP and Dell. However, Acer’s recent acquisition of Gateway is likely to vault the Taiwan-based firm well past Lenovo.

To target consumers, Lenovo will offer the new computers online and through outlets such as BestBuy.com, Office Depot and Target Direct.

The IdeaPad models – Y510, Y710 and U110 – start at well under $1,000.

Lenovo is packing the machines with high-tech features such as facial recognition applications for increased security plus Dolby surround sound and controls for gaming. The screens also are frameless.

By targeting laptops, Lenovo is hoping to capitalize on the fastest-growing segment of the worldwide PC industry. Laptop sales are forecast to grow on average by nearly 10 percent a year through 2011, according to analyst firm IDC.

"Our ThinkPad notebooks are well-known around the world as the best engineered computer for business – for quality, reliability and thoughtful design," said Liu Jun, the recently named president of Lenovo’s Consumer Business Group. "We're now bringing Lenovo's expertise in design and engineering to consumers with our Idea-branded PCs. We are confident we will grow our consumer business by blending innovative technologies like facial recognition with stylish designs to enhance the way people use technology in their personal lives."