Lenovo Looks Beyond PC Market, Considers Smartphones

Posted 02/05/2010 at 6:37am | by Paul Lilly

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Life is good for Lenovo. For the third straight quarter, the company reported record market share numbers in the worldwide PC shipments business, which helped Lenovo double its profits from one quarter ago. Now it appears Lenovo will try to duplicate that success in the smartphone market as it prepares to buy the entire interest of Lenovo Mobile Communication Technology from an investor group.

"For the first time since the acquisition of IBM PCD, Lenovo was the fastest-growing PC company in the world," Yang Yuanquing, Lenovo's CEO, said in a statement. "In the future, while we continue to expand our PC business, we also want to attack the mobile Internet category to drive growth and capitalize our innovation efforts."

Sure the move is risky, but given its recent success, Lenovo can afford to take a gamble. And as Technology Business Research analyst John Spooner puts it, "Lenovo is hitting its stride" and is in "full-on attack mode." So what are the plans for the smartphone biz?

Spooner says Lenovo will target customers in rural China and other markets with lower-priced devices, which include both smartphones and netbooks.

Image Credit: Lenovo