Lenovo Group Ltd said yesterday it will sell a basic personal computer aimed at China's vast but poor rural market and priced as low as US$199.
Lenovo's announcement follows rival Dell Inc's bid to boost its presence in China's booming market with the unveiling in March of a low-cost personal computer meant for novice Chinese users.
Beijing-based Lenovo, which acquired IBM Corp's PC division in 2005, is expanding abroad but is eager to maintain its dominance in China, where research firm Gartner Inc says PC sales grew by 23 percent last quarter.
"Our focus is to get down to the rural market," company spokesman Jay Chen said.
The new Lenovo unit will include a processor and a keyboard and will use a buyer's television set as a monitor, Chen said. He said he had no details on the processor size or other features.
The PC goes on sale later this year at 1,499 yuan to 2,999 yuan (US$199-US$399), Chen said.
Dell, based in Round Rock, Texas, announced in March that it will sell a basic desktop PC designed for China and priced at US$223-US$515.
Some 800 million people live in China's countryside, where incomes average about 4,200 yuan a year.