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Lenovo dialing up overseas expansion

By Gao Yuan (China Daily) Updated: 2014-08-15 07:58

Lenovo dialing up overseas expansion

Lenovo tablets and mobile phones are displayed during a news conference on the company's annual results in Hong Kong in this May 23, 2013 file photo. [Photo/Agencies]

Lenovo Group Ltd plans to sell 150 million devices in the fiscal year that kicked off in April, Chairman and Chief Executive Officer Yang Yuanqing said on Thursday.

The world's largest maker of personal computers will seek to bring a broader product spectrum to customers outside China, where the company is expecting profits to soar in the coming years.

"We are seeking stronger growth in overseas PC markets, especially among high-end customers," Yang said. "Continuous overseas expansion will help us sell more PCs and portable devices."

The Beijing-based company sold 115 million products globally in the previous fiscal year. PCs, laptops, tablets and smartphones were the major shipment contributors.

Yang, 49, said he is "confident" that Lenovo can surpass Apple Inc in worldwide desktop, laptop and tablet shipments sooner than expected. "We are 0.7 percentage point away from Apple in the segment," Yang said.

Lenovo previously said it expected to outsell the United States electronics giant by 2016.

Lenovo saw its earnings grow 23 percent year-on-year to $214 million between April and June, according to its financial results. Quarterly revenue totaled $10.4 billion, representing an 18 percent increase over the same period last year.

Antonio Wang, an IDC analyst, said although Lenovo managed to navigate its way out of the deepest slump in PC history, the company is facing fresh challenges, such as the slowing tablet sector.

Yang admitted in an interview with China Daily on Thursday that Lenovo is reconsidering its tablet business as the product's high-end and low-end market shares were eroded by laptops and large-screen phones.

"Lenovo is set to consolidate its position in the overseas smartphone sector after the $2 billion Motorola Mobility purchase closes," according to Wang.

The acquisition is awaiting approval from the Chinese government. Company executives said they hope the deal can be completed by the year's end.

"Motorola will give Lenovo a large number of users in developed markets that the Chinese company could not reach before," said Lyu Yongchang, research director for Beiijing-based industry consultancy Analysys International.

Lenovo is the top smartphone vendor in China, the world's largest handset market. But its shipments lag behind Apple and Samsung Electronics Co globally.

Lenovo dialing up overseas expansion

Lenovo dialing up overseas expansion

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