Lenovo has made a brilliant trajectory by its strategic marketing and alliance with e-commerce websites like Flipkart. Lenovo’s smart wager with affordable made-for-India LTE devices has worked. The company announced on Friday June 19, 2015 that it has sold one million units of 4G smartphones – Lenovo A6000, A6000 plus and A7000 via Flipkart till June 2015.
Launched in January, the A6000 was Lenovo’s first affordable 4G smartphone in India. A6000 Plus followed after the sale of 300,000 units of A6000 in just 2 months after the launch. The A7000 was availaible in India from April 15, 2015 and was available at the cost of Rs. 8,999 ($144). The CMR’s India quarterly report claimed that 4G-LTE device shipments grew 108 per cent to 2.2 million units for the January – March quarter. The Company believed that the A6000 turned out to be the best 4G LTE Smartphone in India during that point in time. The thriving competition from other companies producing 4G LTE Smartphones was faced by Lenovo’s incorporation of uniqueness in its devices and the provision of a future-proof proposition to consumers. “The combination of aesthetics, performance and usability along with unique aspects like Dolby Atmos made the product offerings even more attractive”.
The Chinese multinational computer technology company which was founded in Beijing in 1984, acquired IBM’s personal computer business in 2005 and its Intel-based server business in 2014. It jumped into the smartphone market in 2012 and emerged as the largest vendor of smartphones in mainland China. Then in January it acquired the mobile phone handset maker Motorola Mobility from Google, finalizing the deal in October of the same year. After that, the company has just grown every day.
A major effort was made by Lenovo in the year 2012 when it decided to expand its market share in developing economies like Brazil and India. Since then, the company has held a position of paramount significance in the Indian market. It has gained a significant market share in India through bulk orders to large companies and government agencies. The government of Tamil Nadu ordered a million Lenovo Laptops in 2012 which made the Chinese tech giant- a major market leader. As of February 2014, Lenovo claims that its offers of cell phones in India have been expanding 100% for every quarter. Lenovo did tests of its cell phones in November 2012 in Gujarat and some southern urban areas, where Lenovo was already popular. Lenovo’s plan has been to spread awareness, keep up an expansive lineup of devices at all price points, and developing distribution systems. Lenovo cooperated with two national wholesalers and more than 100 neighborhood merchants. As of February 2014, more than 7,000 retail outlets in India sold Lenovo cell phones. Lenovo has additionally collaborated with HCL so as to set up 250 administration focuses in 110 urban areas. Now, In 2015, it has made a difference by selling 1 million 4G-LTE Smartphones via Flipkart. Sudhin Mathur, Director of Lenovo smartphones commented on the company’s success and said:
“As a technology first company, Lenovo continues to push the market threshold for newer devices. Apart from providing great devices, our partnership with Flipkart gave consumers in more than 1000 cities/towns across the countries access to our 4G smartphone portfolio. Beyond the metros, we’ve seen also seen a good uptake in Gujarat, Maharashtra, Kerala, West Bengal and Andhra Pradesh.”
Flipkart’s VP of Retail, Amitesh Kumar Jha, said the great portfolio of 4G devices enabled by the partnership should lead to a faster adoption of 4G in India. He further added, “Flipkart currently leads the 4G adoption with about 60% share of LTE devices sold in the country led by Lenovo’s devices. We are looking forward to take this further in the coming months.”
Lenovo’s year-on-year increase of about 951% in tablet sales in India for the first quarter of 2014, shows that the company has proved to be a thriving, having a competitive lead as compared to other companies which manufacture smartphones, tablets and phablets. Canalys, a market research firm confirmed its progress and said that Lenovo took market share away from Apple and Samsung in India in 2014.