Lenovo targets Chinese farmers

The world's third largest computer producer will release a $199 PC to rural China. In the countryside, where nearly 800 million people live, incomes average at $560 a year and have been growing at an annual rate of 10 percent.

Additionally, later this year, Lenovo will start furbishing its computers with Linux instead of Windows operating system – a move that may potentially further lower the price, and undercut Dell.

So far the tactic has paid off. Last quarter Lenovo shipments to China increased by 30 percent accounting for $1.53 billion.