Lenovo plots innovation push

31 January 2011

DAVOS: Lenovo, the Chinese IT giant, plans to take advantage of the burgeoning tablet PC market by placing an "extreme focus" on innovation.

Speaking to Reuters at the World Economic Forum in Davos, Rory Read, the organisation's chief operating officer, estimated tablets will make up between 10% and 15% of the global PC market this year.

Tablets only began to achieve traction among consumers with the successful launch of Apple's iPad in April 2010.

Also speaking at Davos, Liu Chuanzhi, Lenovo's chairman, said: "We have an extreme focus on the innovation of LePad and LePhone because these products will dominate the future market."

A host of electronics firms, including Samsung and Research in Motion, are launching competing gadgets.

Lenovo's LePad was unveiled at the Consumer Electronics Show in Las Vegas earlier this month.

The tablet will be powered by Google's Android operating system, and is set to be launched in China during Q1 2011, retailing at 3,500 yuan ($520; €380).

LePhone, the company's smartphone, was launched in China in May 2010.

But Lenovo still generates 98% of its sales from PCs, and less than 1% from mobile phones, and Apple's iPhone is currently the most popular smartphone in China.

"History has proved we are good at catching up with the market's leaders," Liu added. "Though Apple is winning a significant share in the Chinese market, it has not gained a clearly leading position yet.

"Our advantage is we know this market better."

Data sourced from Reuters/Bloomberg; additional content by Warc staff