Lenovo SthAm prepares for launch

The Spanish South American (SSA) division of Chinese PC manufacturer Lenovo plans to launch independent operations on August 1, focusing on the SME segment, Lenovo SSA brand manager Daniel Acosta told BNamericas. Late 2004, Lenovo absorbed IBM's PC division, giving the Chinese firm a platform for expanding brand awareness in the region. The SSA division includes Venezuela, Colombia, Peru, Ecuador, Bolivia, Chile, Argentina, Uruguay and Paraguay. Through the IBM deal Lenovo launched in Brazil and Mexico earlier this year. "More than an acquisition, this is an alliance of two companies, IBM and Lenovo, which have several features that combine together to generate a new leading vendor in the market," he added. Two of these features are the target markets and prior success in the PC segments, according to Acosta. While Lenovo focuses on SMEs and home users through retail stores, IBM is concentrated on the corporate market. Lenovo also has a strong presence in desktops, while IBM has seen more PC revenues from laptops rather than desktops. After launching independent operations as Lenovo, the company plans to first sell IBM products including ThinkPad and ThinkCenter, which will continue using the IBM brand but in a Lenovo box. Later this year, the firm plans to sell Lenovo products in order to boost sales by 2006. "We will continue with distribution channels development strategies and with the same IBM channel partner programs. We might add a retail channel, but I do not believe it will be a conflict area with resellers, first of all because it is a different channel strategy and also because the products are different," Acosta said. Commenting on the possibility of participating with IBM in other projects, Acosta said: "Lenovo is IBM's favorite [PC] brand. IBM will continue focusing on its solutions, service and on-demand business units and will be able to complement its offering with Lenovo's PCs." "We are totally convinced this is a win-win partnership because no one is eliminating the other company, as we have seen before in the market. There is no overlap in job positions or products, it is complementary, and that is why we believe it will be a successful business. The market will hear a lot about us in 2006," he added.