Lenovo to challenge Apple and Samsung in smartphones: CEO

Yang Yuanqing, chairman and chief executive of Lenovo, said the acquisition of Motorola Mobility and the ongoing transformation in the global landscape will enable Lenovo to stand out in smartphone business, which leaves an opportunity to challenge Apple and Samsung's dominance.

The smartphone landscape is changing, with a sharp slowdown in global shipments. Since China is the most powerful growth engine, but is also losing steam in handset sales, Chinese smartphone makers need to nut out new ways to further development, Yang Yuanging, chairman and chief executive of Lenovo, told Sina news during the Consumer Electronics Show (CES) conference in the United States on Wednesday.

Market participants who are able to adapt to these changes will lead the market in the transformation, Yang said.

"The next step for Chinese smartphone markers is to go overseas," he said. "But whether they are able to compete in the global market remains an issue."

For Lenovo, the acquisition of Motorola Mobility will enable the company to be victorious in the competition with other Chinese smartphone makers, as Motorola owns double-digit market share in the US, and performs in the forefront in Latin America and India, according to Yang.

Lenovo increased global smartphone shipments by 38 percent in the third quarter of 2014 to 16.9 million units, ranking it fourth worldwide after Samsung, Apple, and Xiaomi, according to IDC data released in October. Lenovo's market share also expanded to 5.2 percent from the previous 4.7 percent a year earlier.

After finalising its acquisition of Motorola from Google for $2.9 billion, Lenovo's 5.2 percent market share in the third quarter would jump to 7.4 percent by combining two brands' quarterly sales.

"[The deal with Motorola] makes us the most competitive third in the market, and it allows us to challenge the leading two brands," Yang said.

The Chinese public still needs convincing, however. Many left comments on Sina news saying that Lenovo is basically doing some assembling work, given that it owns few patents, and is well behind Apple and Samsung.

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