Lenovo eyes more Indian telcos for 3G bundling tie-ups

What was the reason behind setting up a separate smartphone division by Lenovo?
India is slated to be the third largest smartphone market in the world by 2017 and expected to grow at 57.5% CAGR in 2011-16. The market is expected to grow close to 70% this year. At Lenovo, we are extremely excited about the opportunities in the Indian smartphone market and would like to leverage the potential this market has shown. To bring more focus to the PC+ era, Lenovo created the Mobile Internet Devices Home (MIDH) division to provide greater focus to smartphones and tablets.

Do you think your smartphones will do better than PCs and tablets in a few years?
Over the last two years in China, we have reached the No.2 position in smartphones with a 14.7% market share. We believe we will reach a position where our smartphones and tablets will become as popular as our PCs. Of course, there will be different industry dynamics that will come into play for smartphones.

What is your strategy for 3G bundling with telcos? Any plans to bring 4G handsets into the country soon?
Last year, we entered into a partnership with Reliance Communications, offering co-branded smartphones that work on CDMA and GSM network simultaneously.
Going forward, we will continue expand our relationship with other telcos, to maximise our coverage. We recently announced six new handsets for the Indian market, and will share our plans about 4G at an appropriate time.

What product differentiation do you offer in smartphones, given that the price point is similar?
Our product propositions are based on consumer needs and their usage habits. We offer four different series of Smartphone’s K, S, P and A. The K series is targeted at premium consumers who are early adopters and looking for products that offer latest technology and are high on performance. The S series offers sleek, ergonomically designed multimedia phones for entertainment on-the-go.

The P series is for professional users who are always on the move and for whom the battery life is critical. And then the A series for active users, who are entering the smartphone category, and are active on social networking and internet browsing.

What are some of the key challenges for a new smartphone entrant like Lenovo in the Indian market?
The Indian smartphone market is growing at a rapid pace and offers equal opportunity for all to grow. To grow in this market, we have forged a multi-dimensional strategy that covers distributors, retailers and consumers. We have partnered with three top national distributors—Ingram Micro, Redington and Advance Computers — to ensure that our smartphones are accessible to all our customers across the country. Our Lenovo exclusive stores (LES) and other multi-brand retails stores will reflect our product and brand proposition, while providing opportunity for the consumers to connect with our brand.