Lenovo CEO: Really Cheap Tablets On The Way

Lenovo CEO Yuanquing Yang, via AllThingsD:

We will be one of the strongest of the players in this area.

Yang is referring to the tablet area.

Apple only covers the top tier. With a $500 price you cannot go to the small cities, townships, low salary class, low income class. … Apple is very strong, but when IBM created the PC market there was just IBM; if you look at the PC industry now it is very diversified. I believe that will happen in tablets as well.

So Lenovo will build really affordable tablets, way cheaper than US$500, and target low-income folks, who really need and want tablets. And by strongest, I’m guessing Yang intends to win with the largest market share based on unit shipments. That reminds of HP and Dell: both companies think unit market share is the most important performance metric. It certainly is important, but sustainable businesses are built on profit.