Lenovo CEO discusses smartphone sales and BlackBerry

Lenovo CEO discusses smartphone sales and BlackBerryThe CEO of Lenovo, Yang Yuanqing, discussed with WSJ how the company is keeping the PC industry interesting and profitable, their early success in the mobile industry and BlackBerry.

Starting with the PC industry, the worldwide shipments for personal computers, both desktops and laptops, had fallen and continue to fall year on year. To challenge this, Yang decided to make sure Lenovo PC prices were premium and developed at a higher standard, meaning while total shipments decreased, revenue increased.

The competitor in the PC space seems to be Apple, with the MacBook and iMac still growing in the PC world. Apple is seeing record market share as more people go for a Mac over Windows, Lenovo is currently the driving force trying to push buyers onto Windows.

In the mobile industry, Yang believes Lenovo is still growing out of China and developing their brand in other countries. Even though consumers may be fine with a Lenovo PC, they may think twice about a Lenovo smartphone. The profits from the smartphone industry push past the PC, but Lenovo cannot create net profit due to advertising and pushing the brand outside of China.

Lenovo tablets have been selling worldwide and the company has two routes to go down, Windows 8 and Android. For now, Lenovo and other companies will work on both, selling cheaper Android tablets and more expensive Windows 8 tablets. Yang did not speak on Windows RT and if Lenovo would work on this platform in the future.

When speaking on BlackBerry, Yang said he could not comment on BlackBerry but if it fitted with the strategy Lenovo is pushing, they will certainly make a move. BlackBerry does have a patent portfolio priced at around $2 billion and the brains to make both hardware and software.

The software side could be useful for Lenovo, with BlackBerry’s appeal to the enterprise level. Lenovo may see BlackBerry’s software as reason enough to acquire the Canadian mobile maker; the question is how much BlackBerry would be willing to sell for, some say they will not get over $12 per share.

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