Lenovo to challenge smartphone market
China-based Lenovo will expand overseas, after two and a half years of refining its domestic smartphone business.
Milko Van Duijl, president for the Asia-Pacific and Latin America, says the company believes it is now ready to go offshore, planning to tap smartphone markets in India, Indonesia and the Philippines.
The three developing countries will serve as its test market as it gears up to enter more developed economies such as the US.
“It makes sense for Lenovo to perfect the product portfolio in emerging markets where distribution matters more than carriers, establish a brand, and then attack the US market,” said Kishore Suratkal, an analyst at Religare Capital Markets.
Having started as a PC maker, Lenovo has stepped up development of smartphones, tablets and smart TVs, following the strategies of technology giants Apple and Samsung.
Lenovo, which has headquarters in Beijing and Morrisville, North Carolina, is the world’s second biggest maker of personal computers after Hewlett-Packard.
It reported a net profit rise of 30 per cent in three months to June 30, boosted by 72 per cent sales increase in the Asia-Pacific and Latin America, 62 per cent in Africa, Europe and the Middle East and 6.8 per cent in North America.