Lenovo eyes high-end mobiles

Global PC makers are eagerly seeking new profit boosters that may replace the decades-old PC business. How to prepare for the inevitable slump in the PC sector is the most discussed topic among top vendors.

The world's largest PC manufacturer, Hewlett-Packard Co, is trying very hard to turn itself into a software and service company.

Dell Inc, the third-largest, also hopes its 1-year-old software group could bring the company at least $2 billion in three years.

Nonetheless, Lenovo has decided to stick to hardware manufacturing but is turning to consumer electronics and the corporate server sector for higher profit margins.

Last year, the Chinese company joined hands with US data-storage company EMC Corp to set up a joint venture selling servers in the Chinese market. Lenovo also tried to acquire IBM's server unit in April but returned empty-handed.

Analysts said compared with the server business, which requires more time and energy to attract customers, the consumer market is a much easier way to generate revenue in the short term.

Day's before Lenovo released its new smartphone, company executives set another target for the consumer business: selling 100 million terminals - including smartphones and tablets - before the end of this year.

"It's a reasonable target for us because we are ready to join Samsung and Apple as the world's top consumer electronics vendor," said Liu from Lenovo.