Milko Van Duijl, the head of Lenovo for Asia region that covers India, Japan, Hong Kong, Association of Southeast Asian Nations (ASEAN) countries, Taiwan, Korea, Australia and New Zealand in chat with Senthil Chengalvarayan of CNBC-TV18 discusses the company's plans for India, trends in PC and smartphone market and some of newly launched products.
Van Duijl said that Indian PC and smartphone market is not much different from China. "Indian market is not much different from the China market in terms of its vastness, in terms of its tier-I, tier-II, tier-III, tier-IV, tier-V cities, that is the same as in India," he said.
PC market has been seeing some declining trend with increasing popularity of smart hones and tablets. But Van Duijl believes that 'PC is anything but a dying breed'
"Although the market may not be growing or even slightly shrinking as we have seen in International Data Corporation's (IDC) numbers the PC market is still huge. Over 350 million PCs will have been shipped in the calendar year. So even when the market is not growing that much or even shrinking by 2 percent it is a huge market," he said.
Below is the verbatim transcript of his interview
Q: You are coming from a fairly good quarter as far as your PC shipments were for Lenovo worldwide. So PCs are not a dying breed as a lot of people seemed to think. What is the future for PCs?
A: You said it very well. PC is anything but a dying breed. Although the market may not be growing or even slightly shrinking as we have seen in International Data Corporation's (IDC) numbers the PC market is still huge. Over 350 million PCs will have been shipped in the calendar year.
So even when the market is not growing that much or even shrinking by 2 percent it is a huge market. When you have 15 percent as we now have, to gain 5 points of market share over the next couple of years which we think we can do that would still add on about 17 million PCs, so that would mean about USD 10 billion of extra revenue. So it is a big market.
Q: It is a big market, yet companies like HP and Dell are struggling to keep their PC business. There are lots of rumors that they could sell off and industry sources tell us that they really keep those businesses on because it gives them a foot into the enterprise business. You could have an enterprise business. What keeps you in the PC business?
A: What keeps us in the PC business is our belief that this industry of providing the individual with a productivity tool which has become almost an extension of one's personality, is very important and for us to turn that into a global business.
Becoming the leader in the PC business has always been our big driver and our protect and attack strategy has worked now for about three years. We continue to grow profitably in China in our think business, the commercial side of the business for large account and then growing very fast in emerging markets and specific markets like India where we want to get to number one and we have achieved to do so.
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