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Lenovo: Apple can't take China because of price

updated 12:50 pm EDT, Sun August 21, 2011

Lenovo CEO sees iPad, iPhone too costly for China

Lenovo CEO Yang Yuanqing in an interview Sunday with the FT expected his company could outmaneuver Apple in China. He saw the iPad and iPhone as inherently limited in the country, where lower incomes often dictated lower prices. Lenovo was competing with similarly expensive phones and tablets, but it was also producing a $150 Android phone and an entry-level Android tablet that would reach customers Apple simply couldn't at the moment.

"With a $500 price you cannot go to the small cities, townships, low salary class, low income class," Yang said. "I don't want to say we want to significantly lower the price, rather our strategy is to provide more categories, to cover different market segments."

The executive also repeated a common assumption among non-iPad manufacturers that the tablet market had to automatically follow the same direction as the PC market, where the market pioneer's share went down as others came in. Unusually, Yang falsely claimed that IBM had created the PC market, ignoring systems like the Apple II or other home computers before IBM's 1981 arrival. "When IBM created the PC market there was just IBM, if you look at the PC industry now it is very diversified," he said. "I believe that will happen in tablets as well."

He wouldn't comment on whether or not Lenovo would buy HP's potentially spun-off PC business. The ThinkPad builder wanted to pass Dell and HP to become the world's largest computer company, but the existing performance was "strong."

The statements came even as Apple had already passed Lenovo for revenues in China, having managed $3.8 billion in the spring where Lenovo sat at just $2.8 billion. Lenovo's first Android tablet in shops, the IdeaPad K1, has also been getting poor initial reviews due to poor display quality and software flaws. So far, it doesn't plan to bring its Android phones to the US and has said it wants traction in its home country before going abroad.



By Electronista Staff
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Comments

  1. macnnoel

    Fresh-Faced Recruit

    Joined: Feb 2005

    +27

    He's right...

    Apple has no interest in rushing to the bottom of the pit.

  1. ionlyuseosx

    Fresh-Faced Recruit

    Joined: Jan 2002

    +20

    Lenovo - running out of time

    People in China are becoming wealthy and will not want to purchase something half a good as the iPad. They will want the best product for their money and the best over-all user experience. Lenovo needs to innovate to stay competitive. Not make cheap products running Android. Anybody can do that.

  1. darkelf

    Fresh-Faced Recruit

    Joined: Nov 2003

    +16

    modern apple isn't

    modern apple isn't really concerned with the cheapest-uber-alles market.

  1. russellb

    Junior Member

    Joined: Sep 2001

    +11

    Sad sad

    ha ha thats the problem with these cheap PC makers .. they don't get it. Although cost is always a factor , people don't buy a mac , or iPhone, iPad because they are cheap. They buy them for the OS , for the fact that they just work and get the job done and do it well. Thing is sometimes people might switch to a mac going for the bottom of the line cheap option, last model or some special thinking its just like a PC ... but then they never go back.

  1. facebook_James

    Via Facebook

    Joined: Aug 2011

    +11

    Chinese want QUALITY

    The Chinese want QUALITY. Apple means Quality. Thus, even poor Chinese will save up in order to purchase an Apple product. They don't want to be associated with poor quality products such as Lenovo's cheap phones, PCs, and tablets.

    Lenovo's CEO completely misses the point. Or if he doesn't then he prefers to compete at the bottom of the market with dregs.

  1. facebook_James

    Via Facebook

    Joined: Aug 2011

    +1

    Chinese want QUALITY

    The Chinese want QUALITY. Apple means Quality. Thus, even poor Chinese will save up in order to purchase an Apple product. They don't want to be associated with poor quality products such as Lenovo's cheap phones, PCs, and tablets.

    Lenovo's CEO completely misses the point. Or if he doesn't then he prefers to compete at the bottom of the market with dregs.

  1. Eldernorm

    Fresh-Faced Recruit

    Joined: Sep 2007

    +8

    Just a thought

    I guess this means that there are fake Lenovo stores in China too. ???

    You know, cause everyone loves them so. LOL

    en

  1. Bobfozz

    Fresh-Faced Recruit

    Joined: Jul 2008

    +3

    eldernorm

    very funny!!!! This Lenovo guru has his history wrong and if you start with false memories, what else are you going to do? People buy cheap when they have to. When they no longer have to, they want what others have. This guy is missing the boat entirely!

  1. Paul Huang

    Dedicated MacNNer

    Joined: Sep 1999

    +2

    They want it expensive

    Cheap = no show-off factor

  1. yticolev

    Forum Regular

    Joined: May 2002

    +2

    Can't afford iPhones?

    7.44 million iPhone users in China right now!

    http://www.electronista.com/articles/11/08/18/near.future.iphone.plans.uncertain/

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