Lenovo and Microsoft (MSFT) will launch market trials in China and India that will validate the market for pay-as-you-go personal computing, using a model similar to prepaid mobile telephone services.

"Lenovo is working with Microsoft to create innovative new business models and technologies tailored for the needs of different markets around the world," said Philippe Davy, Vice President of Strategic Alliances, Lenovo. "This program creates new options for people whose access to personal computing would be limited otherwise."

Consumers will be able to purchase a Lenovo desktop PC by paying about half of its street price up-front, and paying the balance over time through the purchase of prepaid cards from Lenovo.

The innovative pay-as-you-go model enabled by the new Microsoft FlexGo technology helps new budget-constrained consumers own a high-quality PC without being locked into a fixed monthly loan payment, and enables these consumers to manage their PC time in accordance with their monthly finances. After a predetermined number of usage hours, the balance of the PC will be paid off and the consumer will no longer need to purchase pre-paid cards.

The new market trials in India and China will be launched during the next three months, building upon a successful market trial conducted by Microsoft during the past year in Brazil. The first pay-as-you-go market trials will feature high-quality, mid-range Lenovo desktop PCs that are loaded with features attractive to consumers. These models are already available worldwide.

"Lenovo's joint effort with Microsoft using FlexGo pay-as-you-go computing will bring high-quality PCs within the reach of millions of families for use in education, communications, and entertainment," said Will Poole, Senior Vice President of the Market Expansion Group at Microsoft. "We are pleased to be embarking on this new initiative with a leading and innovative partner, Lenovo, starting with market trials in China and India."