Lenovo puts new focus on smartphones as PC sales drop

Lenovo puts new focus on smartphones as PC sales drop
Chinese manufacturer Lenovo gets 80% of its revenue from PC sales. But the company's Chief Executive,Yang Yuanqing, says that Lenovo needs to make the transition to a new business. "Smartphones are our new opportunity," he says. It isn't like Lenovo is starting from scratch. In China, the OEM is the second largest smartphone vendor with 11% of the market, topped only by Samsung. Lenovo took the second spot in it's home country after nearly tripling its market share from 4.1% in 2011.

Late last month, CEO Yuanqing said that he wants Lenovo to start selling smartphones in the U.S. This is going to require the company to understand some of the differences in the stateside smartphone market where most smartphones are sold by carriers. In Asia, smartphones are usually purchased from retailers. Another problem facing Lenovo is that its name is not associated with handsets. To compete in the U.S., Lenovo is going to have to go up against companies like Samsung and Apple, whose names instantly call to mind their latest flagship handsets.

Thanks to the ability of smartphones and tablets to handle many computer related functions, IDC is calling for PC and Laptop shipments to decline 7.8% this year and an additional 1.2% next year. With numbers like that, Lenovo is pushing its transition to smartphones. It hopes to sell 50 million smartphones this fiscal year, which ends in March. That would be an increase of 20 million units or a 67% gain from last year.

 As he did last month, Yang compares the smartphone business to the fashion industry and says the game is all about marketing. For example, when it launched its 5.5 inch Lenovo K900 last month, it used NBA star Kobe Bryant as a spokesman to push the Intel powered device, just as it did when it released the Lenovo P870.

source: WSJ

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6 Comments

1. alpinejason

Posts: 262; Member since: Sep 06, 2011

I have a lenovo desktop pc and its actually pretty damn good.curious to see what they can do with a phone

2. AnTuTu

Posts: 1592; Member since: Oct 14, 2012

Try Lenovo K900 :)

3. cameogt

Posts: 88; Member since: Oct 18, 2012

as long as they produce spec-like HTC One or S4 and they sell it like mid-range then I'm buying it.

4. Shatter

Posts: 2036; Member since: May 29, 2013

The k900 is double the per core performance of the htc one and S4 and it gets better battery life :D. The intel atom they used it it uses 50% less power than the snapdragon 600 on average. Don't believe arms lies, a15 sucks power while intel phone cpus sip.

6. FlushGordon unregistered

It still lags on some games and applications that are optimized for ARMM

5. FlushGordon unregistered

They need to make a BETTER version of the Lenovo K900 seriously? No Google Play and No expandable storage are definitely deal breakers, how could they left these two out?

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