updated 05:34 am EDT, Mon May 27, 2013
Smartphone sales are 'new opportunity' for PC manufacturer
Computer manufacturer Lenovo is planning to expand its existing smartphone sales from other territories into the United States and Europe within the next year, according to the CEO. Yang Yuanging wants to make the move into US phone sales while the PC industry continues to struggle, with the chief executive declaring "Smartphones are our new opportunity."
While the company recently reported a 15-percent increase in annual sales to $34 billion, it is still working on how to increase this further. "As a public company you always have to consider how to grow," Yang told the Wall Street Journal.
Outside of the US and EU, Lenovo is already a big name in smartphones. The company's market share in China alone jumped from 4.1 percent to 11 percent from 2011 to last year, putting it in second place behind Samsung, according to IDC numbers. This rise in China is accompanied by inducing its smartphones to emerging markets in India, Indonesia, and Russia, with the company hoping to use it as a stepping stone to a US or European launch.
Of course, a launch in these mature markets will be difficult for the company, in part due to the immense advertising efforts that existing phone manufacturers undertake in the regions, though this seemingly does not faze Yang. The smartphone market "is more like the fashion industry. We know the importance of marketing, and we will strengthen that."