Lenovo locks horns with Apple, Samsung

Beijing giant to put R&D muscle into battle for home mobility market

Tags: Apple IncorporatedChinaLenovo GroupSamsung Electronics Company
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Lenovo locks horns with Apple, Samsung Lenovo is anxious to mitigate its dependence upon more traditional products in favour of the rapidly expanding mobile market.
By  Stephen McBride Published  September 26, 2012

Beijing-based Lenovo Group is readying itself for battle against Apple Inc. and Samsung Electronics in China's mobility market, as it ponders a foray into the arenas of tablets and smartphones, reports Bloomberg.

Lenovo is poised to overtake Hewlett-Packard as this year's biggest PC vendor, but is anxious to mitigate its dependence upon more traditional products in favour of the rapidly expanding mobile market.

"We want to test the market, see the first steps toward success in China, then roll out to the rest of world," chief executive officer Yang Yuanqing said. "We want to win in the smartphone area and even the TV area."

Lenovo, which introduced its first touch-screen handset in 2010, is spending $793m on an R&D and production facility dedicated to mobile devices, it said in May. The factory will open in October 2013 and will have sales of $1.6bn by 2014, quintipling to $8bn in five years, the company estimates.

"Our development cycle will be much faster than our competitors," said Yang. "Not only are we an innovative company, we understand emerging markets. We have a different strategy."

A China-first strategy gives Lenovo "the right balance between near-term profitability and long-term growth," said Masha Gordon, head of emerging-market equity portfolio management at Pacific Investment Management.

"Lenovo is likely to leverage its global PC footprint to expand its global presence in these new areas."

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