Lenovo looking to ramp up its presence in the mobile space
PC-giant Lenovo is reportedly looking to increase its presence in the smartphone and tablet space
Having been recently crowned the world’s largest PC manufacturer, Lenovo is now said to be ramping up its mobile and tablet operations in order to counteract the reduced global demand for PCs.
After successfully storming the PC space, stealing market share from the likes of Asus, Dell, and Acer, Lenovo is now said to be eyeing potential new ventures inside the mobile space. And with PC shipments declining quarter after quarter, a move into the consumer mobile space-proper makes a lot of sense.
Speaking to Reuters, Jonathan Ng, an analyst with CIMB in Singapore, said: ‘Obviously their cash cow is still going to be PCs, so they will use their PC business to expand into tablets and smartphones.’
Lenovo’s mobile internet and digital home division has doubled in the past year to $1.3 billion, which is said to be down to increased adoption of its smartphones in China – the world’s largest mobile phone market.
Lenovo’s line of smartphones, branded LePhones, currently rank second in China behind Samsung, according to IDC. The company has also produced a raft of innovative Windows 8-powered hybrid tablets, the most notable being its Yoga slate.
In Q2 Lenovo sold 8.6 million phones, including 7 million smartphones. The bulk of which were sold in China, according to the company’s CEO, Yang Yuanqing.
‘We've had success in China. For the next step, we want to expand in the emerging markets first, then mature markets (like the US and Europe),’ added Yuanqing.
Yuanqing did not go into specifics regarding the type of devices Lenovo would be producing, or what operating system they’d run, but one thing is now definitely clear: Lenovo wants a piece of the smartphone pie, and it’s going to put its money where its mouth is to get some.
2013 could see some very exciting Lenovo developments. Now the only question is whether the devices will run Windows Phone 8 or Android?