Lenovo to challenge Xiaomi on smartphones with new company in China

Lenovo's new company will sell mobile devices under a separate brand name

In China's smartphone market, Lenovo wants to fight fire with fire against rival Xiaomi by setting up a new mobile devices company that will use a separate brand, and leverage the Internet to sell directly to consumers.

The still unnamed company will help Lenovo "attack the fast-growing consumer mobile device market in China," Lenovo said in a statement Wednesday.

Competitor Xiaomi was not named. But the new Lenovo company will operate with what sounds like a similar business model, according to details provided in the announcement.

Like Xiaomi, which has cultivated a huge fan base in China through its own website and social networking services, Lenovo's new company will also focus on "close customer engagement".

Sales, marketing and even product development by the company will rely on an "Internet-based business model," Lenovo added in its statement.

Lenovo already has a thriving handset business in China that in the second quarter was about neck and neck with Xiaomi for the top spot in the country's smartphone market, according to estimates from research firm Canalys and IDC.

Lenovo's current smartphone business has been following a more traditional business model, and selling its products through China's different mobile carriers, retail stores and its own online channels.

Xiaomi, on the other hand, has been disrupting China's smartphone market, by largely selling its phones online directly to consumers. The company prides itself on engaging customers for input on product improvements, in addition to offering phones at cheap prices that have undercut competitors' products.

Lenovo's new company will become operational on April 1, with more details to come in the following months.

Other rivals in China, including Huawei Technologies and ZTE, have also been stepping up to compete with Xiaomi by focusing on online sales and offering phones at lower prices. In 2012, ZTE set up its own independently managed team to build a new smartphone brand called Nubia, which has grown in popularity in the country.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesAndroidLenovoconsumer electronicsXiaomi

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

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?