Lenovo unveils consumer PCs

By Philipp Gollner

SAN FRANCISCO (Reuters) - China's Lenovo Group Ltd (0992.HK: Quote, Profile, Research) introduced its first consumer computers in the United States on Wednesday, expanding in a region it entered in 2005 with the purchase of IBM's PC business.

The unveiling of three new notebook computers with advanced features is part of a broader expansion by Lenovo into the global consumer PC market. The company also plans to sell the new consumer computers in France, Russia, South Africa, India, Australia, Singapore and Malaysia, among other markets.

It already sells consumer computers in China, India and Singapore, but is hoping the new products will help boost its global market share and brand recognition. In the United States, its sales have been limited to businesses.

Lenovo is introducing the new computers as it faces fierce competition from Taipei-based Acer Inc (2353.TW: Quote, Profile, Research), which sells personal computers to consumers through Best Buy Co (BBY.N: Quote, Profile, Research) and other major U.S. retailers, as well as in Asia and Europe. Acer bought U.S.-based Gateway Inc in October, part of an effort to edge out Lenovo as the world's third-largest PC maker.

Among the Lenovo computers' features is software that recognizes users' faces, allowing them to log in to their PC and various applications without passwords. The machines also have multimedia technology that lets users listen to music, play videos and view pictures. They come in a variety of colors including red, blue and black.

Lenovo, which had third-quarter revenue of $4.43 billion, plans to start selling one of the new computers in the United States this week for $799 and a second toward the end of January for $1,199. The third model, whose price Lenovo has not yet released, goes on sale in April.

Notebook computers are typically more expensive than similarly configured desktops and carry greater profit margins. They are also the fastest-growing segment of the consumer PC market, with an estimated 21 percent increase in U.S. unit sales in 2007, compared with a 3 percent projected decline in desktop sales, according to market researcher IDC.

Lenovo spokesman James Baussmann said the company is not disclosing sales projections or profit margins for the new products or how much market share it hopes to grab with them.