Feeds

Lenovo set for Chinese smartphone crown in 2013

Next stop the WORLD...

Intelligent flash storage arrays

Chinese PC giant Lenovo is set to oust Samsung as the top smartphone manufacturer in the People’s Republic by next year, thanks to success at the mid-to-low end of the market, according to Gartner.

The analyst said in its top five 2013 predictions for IT in China that Lenovo, which earlier this year displaced HP as the world’s biggest PC manufacturer, has seen strong momentum in its mobile business.

Its smartphone market share rose from just 1.7 per cent in Q3 2011 to 14.8 per cent a year later, way ahead of Apple’s 6.9 per cent and just shy of Samsung’s 16.7 per cent.

Gartner had the following to say:

It is the only local smartphone player that can compete with global top brands in China, thanks to its household brand recognition, nationwide distribution, strong portfolio and reasonable pricing. The brand is positioned at the mid-to-lower end which will drive much of its future growth, and this is where global brands are less competitive. It will also gain share from open markets where its brand and distribution are better established than local competitors.

Success in the Chinese smartphone market could propel Lenovo to similar heights on the global stage, given the huge potential for growth in its domestic market – which has already overtaken the US as the world’s biggest.

Market watcher TrendForce reckons Chinese buyers will shell out for a whopping 294 million smartphones in 2013.

Lenovo’s strategy of targeting the cheaper end of the market, which is also being done with reasonable success by home-grown rivals ZTE, Huawei and others, is a canny one given the huge numbers of feature phone users in China who will be looking to upgrade on a budget to a smarter device.

The firm has already broken ground on a new mobile R&D centre in Wuhan and has even been recruiting ex-Motorola engineers made redundant after Google’s decision to close down the firm’s R&D plant in Nanjing. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.