Tuesday, February 4, 2014

Lenovo a threat to Samsung's Smartphone dominance?

Local analysts and the local media are abuzz with speculation that Lenovo, especially after acquiring Motorola Mobility, will quickly become a threat to Korean smartphone manufacturers, led by Samsung Electronics.  As reported in the Korea Joongang Daily,"The Chinese company, which gobbled up Motorola on Jan. 29, is openly professing that its goal is to move past Apple and Samsung. “From now until 2015, Lenovo and Motorola’s smartphone sales goal is 100 million,” said Lenovo Chairman Yang Yuanqing on Feb. 2." As shown in the accompanying graphic, with the purchase of Motorola Mobility, Lenovo "...leapfrogged LG Electronics and Huawei to become the world’s third-largest smartphone vendor. According to Strategy Analytics, Lenovo and Motorola’s combined market share in the global smartphone market was 6.2 percent as of the end of last year, compared to Huawei’s 4.8 percent and LG Electronics’ 4.7 percent.
This prospective shift in the international market for smart mobile devices illustrates the risks of heavy dependence on the manufacturing and export of hardware, which is modular in nature and keeps getting smaller, cheaper and more powerful.

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