Lenovo is now offering local customers an end-to-end financing tool in a bid to keep and grow its market share, and also intends to roll out the solution to the rest of the continent.
On Friday, Lenovo Financial Services (LFS) - the African debut of the product that is already available in 20 countries - was launched locally. It enables companies to manage their assets through regular refresh cycles on a subsidised rental basis, says Lenovo.
The financial solution will subsidise up to 20% of upfront equipment costs, and offers services that include excess-free insurance against theft, as well as accidental, fire and water damage; asset tracking; and lifecycle management that automates upgrades, among other aspects.
Entire cycle
Ryan van der Ploeg, head of LFS in SA, explains the asset-tracking additionally facilitates accounting functions, giving a snapshot of equipment, while the offer includes equipment disposal in an environment-friendly manner. Customers also have the option of early upgrades as Lenovo has a channel for second-hand items.
These elements and the end-to-end offering distinguish Lenovo's financial play from other offerings in the market, says Mahomed Ramathulla, relationship segment leader for Africa. He notes the segment has not really taken off locally.
Lenovo Africa GM Graham Braum notes: "Technology becomes outdated after three to four years, yet some companies still sweat these assets for as long as possible, believing they are stretching their IT budgets. In reality, it works out cheaper to refresh equipment rather than to maintain it. In fact, Gartner says 51% of asset costs occur after warranty periods, meaning the total cost of ownership may be a lot higher than initially planned."
Growth driver
Lenovo has about a quarter of the local market share, and LFS is seen as a tool that will help it grow and defend this stake, adds Ramathulla. According to the IDC, Lenovo had 19.6% of global market share at the end of the second quarter of this year, having moved 14.6 million PCs to entrench its position in the top spot.
Overall, worldwide PC shipments reached 74.4 million units in the quarter, a year-on-year decline of 1.7%. Ramathulla says the company also plans to roll out the financing "tool" in other parts of Africa, starting with the Southern African Development Community, before heading East and then West.
Ramathulla adds Lenovo is seeing demand from other African countries and will accelerate its growth into the rest of the continent.
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