China’s Lenovo to launch own brand of computers in Brazil

6 March 2006

Sao Paulo, Brazil, 06 March – Chinese computer manufacturer Lenovo plans to launch its own brand of computers on the Brazilian market in 2006, where the information technology market grew by 38 percent last year, according to local press reports.

The new line of computers, specifically lap tops and desk tops, will be aimed at small and medium-sized companies, a segment to which Lenovo does not yet sell its products in Brazil.

Currently, Lenovo’s Brazilian subsidiary sells the Think brand, owned by US company IBM, the Personal Computer (PC) division of which Lenovo bought in 2004 for US$1.75 billion.

Thinkpad laptops and Think Centre desktops sold in Brazil are aimed at large companies, which were IBM’s main sector in the country.

The new “3000” line, to be launched in Brazil, will be the first group of products with the Lenovo brand and was presented in the united States and some Latin American countries on February 23.

The aim is not to substitute Think branded computers but rather to increase the product range available on the market, financial newspaper Valor Económico said.

The Chinese manufacturer is already preparing to train representatives from more than 700 small companies that will sell the new product all over Brazil.

The new computers will be manufactured in Lenovo’s factory located in Jaguariúna, a city 138 kilometers from Sao Paulo, where the Thinkpad and ThinkCentre computers are currently produced.

Last year, 5.6 million computers were sold in Brazil, a year-on-year increase of 38 percent.

The increased value of Brazil’s currency against the US dollar contributed to lowering the price of some imported components.

The increase was also due to the Brazilian government’s “Computer for everyone,” program, which lowered taxes on equipment, thus lowering end-user prices. (macauhub)