Lenovo announces mobile development facilities in China
Lenovo®, the second largest PC manufacturer in the world, is moving beyond the desktop and laptop computer and incorporating more mobile technology into its portfolio. The company has announced plans to invest nearly $800 million during the next five years to open a new mobile device development facility in China.
The establishment, the Lenovo (Wuhan) Industrial Base, will house facilities for mobile product research and development, production and sales. Lenovo, which held a groundbreaking in Wuhan, China, in May, expects the facility to employ thousands of workers and to begin operations in October 2013.
According to the Wall Street Journal, Lenovo estimates the new facility will generate as much as $1.6 billion in revenue by 2014.
The development of the new facility represents a new direction for Lenovo, which is hoping to expand beyond its core PC business in order to capture some share of the lucrative mobile market. The company has already introduced several tablet computers and has announced plans for smartphones as well.
According to a January 2012 report from Canalys, Lenovo was the only top-five PC vendor to increase its market share in the fourth quarter of 2011. The company recently surpassed Dell to become the No. 2 PC manufacturer in the world and would undoubtedly like to see that momentum carry over into the mobile space.