Lenovo wants to be the world’s largest smartphone maker–a position currently held by Samsung. Lenovo is already the world’s biggest PC maker and the new leader in smartphone sales in China–a huge market. Lenovo CEO Yang Yuanqing says that Lenovo’s leadership position in China isn’t very profitable, though, telling the Wall Street Journal, “Our smartphone business in China makes a little bit of money, but not so much.” It’s highly competitive with slim margins.
But Lenovo still sees a big future for smartphones not in the Apple iPhone-type models for the elite, but in servicing the broader market with less expensive phones. It’s the same strategy that has earned Lenovo the #1 spot among PC makers. Last quarter Lenovo smartphone shipments to Southeast Asia increased 300% with Eastern Europe shipments growing 500%, according to the WSJ.