Lenovo is one of the most notable vendors in the PC market but the company has also been in the smartphone business for a while and is now considering acquiring a number of other firms to further enhance its product portfolio. The acquisitions will probably be aimed at bolstering its mobile division.
Talking about the acquisitions, the company’s CEO Yang Yuanwing said, “We would fully leverage this [acquisition] tool if the target is consistent with our strategy. Any area which is consistent with our strategy where we are weak, we would like to consider acquisitions.”
In recent years, PC sales have grown sluggish as smartphones and tablets have grown popular. Naturally, PC vendors have been forced to improvise and enter the mobile market to stay competitive and profitable. So far, Lenovo has done fairly good on this front. It was able to grab a sizeable market share in smartphone sales in China, effectively overtaking Apple in the country.
The company plans to carry forth this success and build on it by aggressively pushing out newer models into the market. In April 2013, Lenovo intends to introduce 40 new phone models. This is a strategy which seems fairly remote from that of other smartphone vendors such as Apple who has banked on a single smartphone release each year.
But Yang says that his company’s strategy offers a wider range of options for the users, “Some companies use just one model to cover all the price bands and customer segments. We will have multiple models to cover different price bands. We will have a much broader, wider product portfolio. Our development cycle will be much faster than our competitors.”