Chinese PC maker Lenovo has hit a mega deal with Indian state Tamil Nadu. The state will buy 3 lakh (0.3 million) laptops from the company making it one of the biggest deals for the Chinese maker. The Tamil Nadu government recenly announced the free laptop project for students of state-run colleges and high schools. ELCOT earlier issued a controvercial tender where it removed Linux as the requirement. Muktware broke this story. Within a few weeks ELCOT was forced to change its pro-Microsoft policy and put Linux on these computers.
Rajiv Rao, Director (SMB), Lenovo India, told Business Line, "For us, it is an amazingly significant project. In India, Lenovo was at number three position in the quarter ended September. However, because of Tamil Nadu project, we will be number one for the December quarter alone. The difference between Lenovo and number one is 100,000 units. Last quarter, Lenovo sold 380,000 units in India."
Lenovo was the lowest bidder. Lonovo quoted a price of Rs 13,939 per laptop which was Rs 10,000 lower than the retail price. Lenovo is taking this hit to increase presence in India. The same strategy IBM adopted by selling its PC using to Chinese Lenovo instead of Dell to increase presence in China.
The Tamil Nadu government is planning to provide 0.68 million laptops to students in the State in the next five years.