Shao Tao, VP of Lenovo Business Group in China spoke on their smartphone strategy. Lifting its product portfolio average into the $300 price band is a key step in lifting MIDH profits. This price band is ~50% of the country’s smartphone value per SINO research.
The price band is dominated by Samsung (>50%) and Apple (28%) with a 75-80% share. Lenovo believes its brand combined with quickening product development and manufacturing times from its Wuhan facility can refresh a richer and fuller product portfolio covering a wider birth of open distribution channels faster than its competition.
Lenovo’s Tablet Strategy
Lenovo said >75% of its tablet shipments last quarter (i.e. 1.7 mn) were into markets outside of China. Lenovo will push its tablets into China and accelerate innovation much like in smartphones.
China’s 8” tablet segment has grown rapidly, accounting for 27% of the industry last quarter vs. 4% in the year ago quarter. The 10” tablet was 35% of industry, declining from 74% in year ago quarter.
Lenovo’s newest employee “Ashton” launched 8″/10″ Yoga tablet with three modes. The device shipped in the US and China at the start of November. Lenovo said orders were very healthy at 100,000 in the initial week of launch. BestBuy online showed out of stock inventory.