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Lenovo Group establishes a new branch company to develop mobile business based on internet

Updated:2014/10/17 10:38

Lenovo Group declared on the October 15th evening that it would establish a new branch company to promote smartphone and other devices based on internet model. The new company begins the formal operation on April 1st in 2015 and will have independent name and new branch brand. The President of Lenovo China, Chen Xudong will be the CEO of the new company.

This time, Lenovo adopts the same strategy with Xiaomi, Huawei Honor, ZTE Nubia, IUNI and etc, hoping to establish a new mobile phone brand based on internet marketing and internet direct selling and compete with these new manufacturers.

In the second quarter of this year, Lenovo Group has sold 15.8 million phones, half of which are through operators; this could make phones with low price, even for free, and manufacturers benefit from operators subsidies.

But as three operators has reduced the subsidies, phone manufacturers are facing with such a situation that large part of phones will be sold at the open market, which threatens the manufacturers to offer more competitive products.

Previously, Huawei, ZTE, Coolpad launched independent phone brands and cost-effective products and got positive shipments. And it will be more flexible to join the competition for Lenovo Group to set up an independent company under such circumstance.

Lenovo Group cellphone business has three brands now, including Lenovo, Vibe and MOTO, the one has been announced to be purchased by Lenovo Group. Added with the new brand, Lenovo will compete in the market with four brands.

 Source:c114
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