Lenovo to invest AU$10m into Australian consumer business

Lenovo will be using its commercial business as the foundation to grow its consumer business in Australia.

Lenovo was named the leader in global PC shipment by IDC during the last quarter, where its market share reached 20 percent for the first time. This, along with Australia being a mature market in technology adoption, has given the Chinese-based company reason to expand its consumer business in Australia.

For a long time, Lenovo in Australia has been known for its commercial business, but in conjunction with the launch of its new Yoga tablets — Yoga Tablet 2 Pro, Yoga Tablet 2, and Yoga 3 Pro — the company has announced that it will be investing $10 million this fiscal year in marketing and retail to build its consumer business in Australia.

Yang Yuanqing, Lenovo CEO and chairman, said at the Australian launch of the Yoga tablets that Lenovo will complete the company's business portfolio in the country.

"We are the top PC company in the world, and we aim to grow even more. I want Australia to become the growth engine for Lenovo," he said.

Currently, Lenovo's consumer business operates in China, Japan, the US, and Western Europe.

Matt Codrington, Lenovo Australia and New Zealand managing director, attributed the ability to launch its consumer business in Australia to the solid foundation the company has already built with its commercial business.

"Australia has maintained a very strong position in the commercial market, with strong year-on-year growth in our flagship segments, being education, government, and large business," he said.

Recently, the company completed the $2.3 billion acquisition of IBM's x86 server business , which was finalised in September. The company has already committed AU$5 million to fuelling the growth for this part of the business in Australia.

"This is about growing the business much, much faster. It's about building our capabilities around servicing hardware and software services and infrastructures combined," Codrington said.

Meanwhile, the company plans to finalise its pending acquisition of Motorola Mobility from Google "very soon", Yuanqing said. Once the deal is finalised, Lenovo will become the world's third-largest smartphone maker.

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