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Lenovo To Launch $199 PC In China

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[ Business]

Lenovo Group announced today that it would sell no thrills personal computers targeted at China’s large poor rural population starting at $199.

Lenovo’s announcement comes after competitor Dell entered the Chinese market in March by offering its affordable personal computer aimed at beginning Chinese users.

Buyers of the new PC will use a television set as the monitor. The new PC will be available later this year and will retail for $199 to $399.

"Our focus is to get down to the rural market," said company spokesman Jay Chen.

Chen said Lenovo latest move was not in response to Dell entering the market and that the company has been selling low-cost PC’s targeted toward rural Chinese families since 2004.

"It’s a natural evolution. We are not responding to our competitors," Chen said. "After three years of market development in low-tier markets we have gained experience and understanding."

Around 800 million people live in China’s rural areas and incomes average about $560 a year but are increasing at annual rate of over 10 percent according to the AP.

Lenovo said it has plans to set up a rural sales network of 5,000 dealers to reach farmers and other people.

Lenovo is the third-largest makers of PCs, behind Hewlett-Packard and Dell.

Lenovo To Launch $199 PC In China
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