Len­ovo di­al­ing up over­seas ex­pan­sion

China Daily (Canada) - - BUSINESS - By GAO YUAN gaoyuan@chi­nadaily.com.cn

Len­ovo Group Ltd plans to sell 150 mil­lion de­vices in the fis­cal year that kicked off in April, Chair­man andChief 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 over­seasPC­mar­kets, 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-onyear 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 toWang.

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 Bei­ijingin­dus­try 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.

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