With the launch of its latest range of Lifebooks, Fujitsu is looking at making inroads into the mid-market space. We examine how the new notebook range, that starts from sub Rs. 22,000, could turn things around for Fujitsu in this segment
By Mehak Chawla
With this announcement, Fujitsu is aiming to create the perception of a provider of entry level, powerful, yet individual solutions for growing organizations. The focus is on affordability and Fujitsu is also looking at revamping its channel partner strategy in order to address the SMB market.
In order to shorten its long delivery times, thanks to products often being shipped out of Germany or Japan, Fujitsu has announced that almost half of its Lifebook portfolio is already available ex-stock with channel partners in India.
Given the fact that the decision making cycle for SMBs in terms of technology purchases is much shorter than that of large enterprises, this work well for Fujitsu. Ramprasad Lakshminarayan, GM, Channel Sales, Fujitsu India, said, “In case of this Lifebook Series, the customers don’t have to wait for products to arrive from Germany. We have ensured that they are already available ex-stock in India.”
The products
All the Fujitsu Lifebook series notebooks come with features like anytime USB charge, spill resistant keyboard, HD anti-glare display, Webcam, integrated speakers and digital microphone etc. There is also an option of an integrated Blu-ray disc drive (on select models) for enhanced multimedia performance, if required.
Over and above these standard features, what Fujitsu is trying to do is to make these notebooks more efficient and lighter to lug around. The mobility focus is made clear with the fact that the lightest Lifebook weighs only around 1.9 Kg. Improved battery life is another aspect that’s being highlighted. Fujitsu is claiming over six hours of battery life and it also has an anytime charge function, which implies that you can charge portable devices from the USB port even if the notebook is switched off.
The Lifebook range is available in display sizes between 13.3 inch to 15.6 inch. All of the notebooks have an HD ready display screen while the higher models in the NH751 and AH530 also feature dedicated Nvidia/AMD graphics with full HD screens. For the Lifebook SH531, Fujitsu has also provided the option to upgrade with an external UMTS solution in its 34 mm ExpressCard slot while the Lifebook AH530 features embedded 3G/UMTS connectivity.
The new notebooks are available with second-generation Intel Core i series processors, up to 8 GB RAM, up to 750 GB hard drive, Intel HD graphics and a claimed up to six hours battery life. All LifeBooks sold in India will be either made in Germany or Japan and not Made in China, something that the customers might appreciate.
The products also come with a green touch. The come with a 0-watt AC adapter that ensures no power consumption when the notebook is off. They also come with an eco mode for power saving during use.
Pricing to succeed
The prime focus for Fujitsu, in terms of this new series, has been to lower the price points so as to make the proposition attractive for SMBs. Since the SMB segment in India is particularly price sensitive, a lot of marketing campaigns for the Lifebook center around the fact that the range begins at a sub Rs. 22,000 price point.
However, the catch lies in the fact that it is only one notebook that comes with this feel-good price tag. For the high end Lifebooks, an SMB could well end up shelling out up to Rs. 50,000.
However, analysts felt that this attractive pricing might click with SMBs. Joseph James, an independent tech consultant, said, “For SMBs, a Rs. 25,000 notebook with a good configuration, that can serve the mobility purpose of its executives might be a good idea.” However, Joseph wasn’t too convinced that MRP alone could get the numbers going for Fujitsu.
“Although their pricing of Lifebooks is very competitive, especially for the Indian mid-market, the lack of brand awareness is a big disadvantage,” he added.
There are other factors too that could inhibit the Lifebooks from taking flight. The fact that this market is already crowded with better-known brands like Dell and Lenovo is something that could hinder Fujitsu’s growth. Dell’s Vostro series, again aimed at the same segment, though it doesn’t come with such attractive price tags, comes with competitive, and in many cases, better features. The fact that Dell’s after sales service is also well established and often appreciated also favors the computing giant.
Then there is Lenovo’s ThinkPad series, which is also positioned in the commercial space, and although the ThinkPads’ are slightly more expensive, they are considered much better in terms of build and performance.
Market aspirations
“We got serious about this business only in 2009. As of now, we are not really looking at market share. Our focus is to make these products more available and affordable in India,” added Sharma.
Though personal computing products aren’t Fujitsu’s stronghold in India, experts are of the opinion that the vendor might be able to leverage its strength in the server and storage domain in order to market its products like the Lifebook series. Sharma also agreed that they are not ruling out the possibility of bundling personal computing products with server and storage offerings.
Apart from that, Sharma explained that Fujitsu India, as of now, is focusing on selling complete solutions to the market and making businesses more agile. “The aim is to first get the numbers going in terms of market uptake,” he said.
Ultrabooks, not there yet
Given the changing enterprise focus of Fujitsu and its apparent diversification into the SMB segment, speculations are rife that an Ultrabook might just be the next in-the-pipeline thing for Fujitsu. However, Sharma refuted the claim when he said, “We will be looking at Ultrabooks in due time but, for now, we are looking at reaching out to SMBs with our Lifebook portfolio.”
Ultrabooks, though they are coming at a very hefty price tag, are expected to make some dent in the mid-market space. However, given the price points of Lifebooks its unlikely that Fujitsu is seeing any threat coming from the Ultrabook quarter. That said, it cannot be overlooked that most other players in the market—Lenovo, HP, Acer and even Samsung—have already launched Ultrabooks in the Indian market.
Even though Fujitsu has made a late entry into a market heavily dominated by the likes of HP and Dell, its pricing coupled with some competitive features could make the difference.
mehak.chawla@expressindia.com