About 800 million people live in China's countryside, where incomes average about $560 a year but are rising at an annual rate of more than 10 percent. Bearing in mind that China has one of the fastest growing PC markets, focusing on these low-tier markets could be a smart move for PC makers. Dell also announced in March that it will sell a basic desktop PC designed for China, priced between $223 and $515.
"It's a natural evolution. We are not responding to our competitors," company spokesman Jay Chen said. "After three years of market development in low-tier markets we have gained experience and understanding."
The company did no comment on what operating system options Lenovo's systems might embrace, but seeing that Microsoft has cut the price of Windows Vista in half for Chinese customers, it is possible to see Microsoft’s OS make its way into the low-budget PCs.