Lenovo has confirmed its intention to focus on the smartphone market within the next year, even as it remains unaffected by shrinking PC sales.
Lenovo's Chinese CEO Yang Yuanqing confirmed to The Wall Street Journal over the weekend that the smartphone market represents a new opportunity for the company, even though its PC sales are still relatively strong.
The company's last financial results saw it buck the PC sales slump, posting a 90 percent rise in quarterly profit and a record 15 percent growth in year-on-year sales. Its interest in the smartphone market will see it compete against the likes of Apple and Samsung, which it has already identified as its key rivals to its 60 million smartphone sales target for 2013.
In China, where the company is already approaching the 5 million mark in quarterly smartphone sales, it is already beginning to dominate in market share. In June last year, it surpassed Apple, Nokia, and Huawei, taking 13 percent of the Chinese market and earning the company the number two smartphone manufacturer title. Samsung is the current leader in the Chinese market, with about 16.7 percent market share. Lenovo's ability to stomp on its competition in its home market has also led executives to dismiss calls for a purchase of Nokia as laughable.
The company isn't alone in its thinking, however. Gartner believes that Lenovo has a real chance at stealing local market share from Samsung by the end of the year, given its growth figures; in the third quarter of 2011, Lenovo was sitting at just 1.7 percent of Chinese market share.
Apple and Samsung still dominate the global market, as Lenovo takes small steps outside of China. It recently entered the Malaysian market with two Android smartphones, and it has already begun selling its handsets in India, Indonesia, the Philippines, Vietnam, and Russia.