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News - Written by Renai LeMay on Wednesday, May 18, 2011 8:55 - 17 Comments
Lenovo defends Aussie price hikes
PC manufacturer Lenovo has mounted a spirited defence of its Australian pricing, despite launching its flagship new ThinkPad X1 laptop in Sydney for $560 more than the same hardware will cost in the United States.
At a launch event yesterday for the device, which brings a number of new features to the Chinese company’s laptop line-up, company executives said local pricing on the machine would start at $1,959; despite it selling for as little as $1,399 in the US. Executives defended the pricing by saying the company priced “at the local market”, not based on what the value of the Australian dollar was compared to the US. Currently, one Australian dollar buys $1.06 US dollars.
The logistical cost of bringing machines to the Australian market was greater than in the US, the company said, in addition to an enhanced cost of servicing Australia’s dispersed population. Lenovo Australia managing director Alan Munro cited the “sheer size of supply” to locations such as the US or Europe bringing economies of scale. And costs outside the cities added up. “It’s the most urbanised country in the world — if you’re outside the urban area, it costs more,” he said of Australia.
“There will be fluctuations in pricing from country to country,” said Lenovo product lead David Heyworth. “We try to ensure they are as minimal as possible. There are service and support issues that we need to maintain here. We feel that at $1959, for an X1 product, which is quite revolutionary, with new standards of managements, processor speeds … we feel it’s a compelling product.”
Lenovo executives added that the pricing was based on Lenovo’s desire to be competitive in the Australian market — not necessarily on to match parity with the US dollar.
However, at the launch, the company faced a hostile audience of journalists who expressed their own frustration and that of their readers about ongoing price differences between Australia and other countries on the part of technology manufacturers.
“Shouldn’t you be pricing it at a parity basis, rather than what the market is charging?” one asked. “We had this discussion with Microsoft over Windows 7. Saying that’s what everybody else is doing is not an acceptable answer.”
And earlier, after a Lenovo response on the pricing issue: “I don’t accept that.”
Lenovo is billing the X1 itself as its new thinnest laptop — but still with a great deal of processing power and features. The device has a 13″ screen and a number of high-end features — it can come with Intel’s i3, i5 or i7 processors, uses a sturdy ‘Gorilla Glass’ screen from manufacturer Corning, has a new battery which can charge up to 80 percent in 30 minutes and a new backlit keyboard.
Dolby sound comes in-built, as well as an on-board 3G mobile broadband connection, 720p camera, high definition microphones designed to support Voice over IP telephony and a fingerprint reader. Overall, Heyworth billed the laptop as the most advanced laptop ever made in Lenovo’s ThinkPad line-up. The company acquired the range from IBM some years ago; it has a reputation for quality amongst business users.
At the event, Heyworth conducted some unusual demonstrations to prove the ThinkPad X1’s durability — dropping a model to the floor from height and then standing on it, and pouring a glass of water over the device’s keyboard. The machine survived fine and was still able to function as normal.
“I could dance, but I think I should stop dancing before it stops working,” joked Heyworth as he stood on the laptop.
Image credit: Lenovo
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