IBM PRODUCTS TO COST LESS IN KENYA

Computing

The Chinese company that has acquired the personal computing division of America's technology giant, IBM, announced on Monday it was cutting prices of some IBM products in Africa.

Mr Dan Kazungu, the New Lenovo's Territory Manager for East Africa, said the company would reduce the costs of accessing new products in the region. "We expect a price reduction on our flagship products as we streamline the supply chain and pass on the benefits to the customer," Kazungu told a media briefing in Nairobi.

"More price cuts could also come as we harmonise existing supplier contracts from IBM to Lenovo," he said.

He said the company would focus on product development and innovation to penetrate the local ICT industry and win new customers.

"Lenovo will continue to showcase products with a lot of in-built software intelligence and superior design features that enhance user and enterprise wide productivity and reduce costs associated with managing personal computers," he said.

Lenovo paid USD1.25 billion, USD650 million in cash and US$600 million in the Lenovo Group shares, for the acquisition. This translates into an 18.9 per cent of IBM shareholding in Lenovo.

Lenovo will also assume about US$500 million of the net balance sheet liabilities from IBM.

Kazungu said the IBM/Lenovo Global Alliance presents great value to the East African market place and consumers alike.

"To the consumers, it means continued access to innovative, leading edge award winning products that not only guarantee a great computing experience but products rich with value added features that drastically reduce the total cost of ownership," he said.

To the Business Partners and Distributors, Kazungu said the deal would cut the cost of doing business as the company becomes streamlined and focused with less internal red tape.

"It is important for clients in East Africa to be assured that the New Lenovo will use the existing global business partner network to sell and support its products," he said.

Kazungu said the company would rely on existing IBM East Africa network for sales and support coverage.

"We will be looking at our regional channels afresh and have a business partner model that works for each East African country," he said.

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