Lenovo is diversifying its hardware business

The world’s No. 1 Personal Computer (PC) maker, Lenovo, is also concentrating its efforts in becoming a powerful smartphone maker. It dominates the Chinese PC market and due to shrinking worldwide PC sales it is expecting to diversify. The Chinese hardware maker is aiming at taking a bite of Apple and be a contender for Samsung. It is currently the world’s No. 4 smartphone maker according to IDC. The world’s No. 1 smartphone maker Samsung with 28.8 percent share of the smartphone market at the end of 2013 is the leader followed by Apple with a 17.9 percent market share. Another Chinese company, Huawei, is the No.3 smartphone maker in the world.

Lenovo’s market share of smartphones is rising much faster than others. Apple experience only about 10 percent growth while Samsung’s growth is almost flat. Google is selling its Motorola Mobility to Lenovo for almost $3 billion. Lenovo smartphones are becoming more popular in countries like Indonesia. Lenovo is also diversifying into server business. It is buying IBM’s x86 server business for $2.3 billion and will become the world’s third largest server business. Now it has four main business groups; PCs, mobile, server and storage, and cloud services.

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