Lenovo building industrial center to develop tablets, smartphones

The Chinese PC maker has been ramping up efforts to compete in the mobile devices market

Chinese PC maker Lenovo plans to invest more than 5 billion yuan (US$796 million) to build facilities for the development and production of tablets, smartphones, and other mobile devices, it said Monday.

Lenovo said it held a groundbreaking ceremony for the company's new industrial center located in the Chinese city of Wuhan. The facilities there, which will house research and development, production and sales, will begin operations in October 2013.

Lenovo said the new facilities will help the company bring more mobile devices to both Chinese and foreign markets, while also improving its supply chain. The sales revenue generated from the facilities will reach 10 billion yuan by 2014, and later reach 50 billion yuan within the next five years, according to the company's projections.

Lenovo, now the world's second largest PC maker, has been steadily expanding to compete in the smartphone, tablet and smart TV markets. Last year, the company established a new business unit devoted to the development of such products, while also breaking ground on a production center in Chengdu, China, partly meant for the eventual manufacturing of mobile Internet devices.

Many of the company's newest mobile products have gone on sale in China first, acting as a kind of testing ground, before arriving in foreign markets, according to analysts. For example, Lenovo has released several smartphones under its "Le" series in the country. It plans to sell the smartphones in emerging markets as well.

China has also become a major market for mobile devices, with the country already surpassing the U.S. in smartphone shipments, according to research firm IDC. Given Lenovo's extensive sales reach and strong PC business in China, the company shows major potential to succeed in the country, said IDC analyst Teck Zhung Wong.

Lenovo's share of China's smartphone market recently saw a major jump, moving up from 1.8 percent in last year's third quarter, to 9.1 percent in the subsequent fourth quarter, according to IDC. This made it the fifth largest smartphone vendor in the country during the fourth quarter.

"Lenovo's building of the R&D center seems to indicate they are serious about this market," Wong said. "Once they have success in China, this can make their expansion into other markets smoother."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments


James Cook University - Master of Data Science Online Course

Learn more >


Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?