TEK TALK, Computer insights by Ed Collins

China’s Lenovo PC-maker plans US expansion

China’s Lenovo Group, a top manufacturer of personal computers, plans to increase its sales in the U.S. this year by opening a production plant in North Carolina.

Lenovo, a relative PC upstart here, believes the U.S. offers potential sales opportunities for its products such as the Yoga touch screen PC that has the ability to adjust both the screen and keyboard in a variety of flexible operating positions.

The company has already captured 40 percent of the retail market here with sales of its quality PCs costing more than $900 and able to run Microsoft’s new Windows 8 touch software.

Lenovo is also recently launched a 27-inch touch screen desktop PC named Horizon that can also operate as a desktop or lie flat and serve as a touch-screen tablet as well.

At this February's Mobile World Congress in Barcelona, Spain, the company put its growing tablet devices on display. They announced a trio of 7-inch Android tablets that they maintain  are ideal for portability, can handle multimedia, and offer flexible purchase prices.

“Lenovo’s latest Android tablet family is designed to meet the demands of a wide range of customers, particularly young, active users who are always on the go, and have adopted the 7-inch form factor as their own,” said Chen Wenhui, a Lenovo vice president. The company offers 10-inch tablets as well, he points out.  

The company purchased IBM’s ThinkPad personal computer line several years ago and it has become a popular product in bolstering company worldwide sales. It’s product lines are now focused on high-end personal computer lines, in price competition with Apple Inc. The company indicates it also plans eventually to enter the U.S. smartphone field.

Lenovo’s CEO Yang Yuanqing envisions new opportunities will arise with the opening of its first production facility in the U.S.  He believes the facility, that will create more than 300 new jobs here and will give the company a better chance to fulfill customized computer and server requirements quicker and more efficiently by avoiding overseas parts and shipping delays. Lenovo also maintains plants located in Japan, India, and Brazil.

Personal computer sales have generally been down lately, while tablet sales are booming. The big three in producing and selling personal computers here are: Hewlett-Packard, which remains a shaky number one producer, with Lenovo coming on fast in second place, and Dell, a former number one, now fending off takeover overtures in third place.