Lenovo Eyes Smartphone Push in the U.S.
May 27, 2013 9:39 AM
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Lenovo remains mum on its exact plans
The fact that many people are turning to smartphones and tablets rather than notebooks has left many computer manufacturers scrambling to find anything to help increase sales and profit. One of the largest computer manufacturers in the world, Lenovo, has announced that it plans to begin pushing smartphones in the U.S. as PC sales continue to decline.
Lenovo's CEO believes that smartphones present the company a "new opportunity" to grow. PC shipments are reportedly expected to grow only 3 to 4% this year in China, despite the fact that China is one of the biggest growth sectors in the world. In Western Europe, computer shipments are expected to decline for the 11th quarter in a row.
Lenovo is facing a challenge to enter the smartphone market because it doesn't have the name recognition for smartphones that other manufacturers in the U.S. enjoy. There are no specifics available on Lenovo smartphone plans at this point, but odds are the plans will involve Android.
Lenovo teased the U.S. audience by announcing the sleek,
Intel Atom-powered K900 smartphone at CES 2013
, but repeated its familiar mantra that it wasn’t for U.S. consumption.
Analyst Nicole Peng said, "The competition landscape in the U.S. smartphone market is far more challenging for newcomers, with Apple and Samsung dominating over 70 per cent share."
“However to start selling smartphones in the U.S., more importantly to gain carrier support is strategically important for Lenovo’s overall PC+ strategy globally.”
Despite sluggish computer sales in 2012, Lenovo did report
strong Q4 earnings
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