For quite some time now, Samsung Electronics and Apple Inc have been the No. 1 and No. 2 smartphone makers in the world, respectively. No one could expect any other brand to displace any of the two yet. Hence, the real battle would be among companies that would occupy the No. 3 spot.
Based on the data recently released by information technology research firm Gartner, Lenovo went ahead of the race in the third quarter. The Chinese smartphone company is now the third most popular smartphone brand in the world. It just displaced LG Electronics, which held that spot in the second quarter.
It should be noted that this is the first time for Lenovo to occupy that spot and be next to giants Samsung and Apple. This also means that sales of the company’s handsets increased in the period. The big question now is whether it would be able to sustain the momentum and remain in that third spot in the coming quarters?
According to data from Gartner, Lenovo sold 12.9 million units of its smartphones in the third quarter. That was an 84.5% jump compared to the company’s sales in the same period last year. Overall, Lenovo accounted for 5.1% of the global smartphone market, from 4.1% year on year.
The significant growth in Lenovo’s sales could be attributed to its popularity in its home market, China. Logically, the company’s new 5-inch phablet called Vibe X, which was launched in September at the IFA trade show, was warmly welcomed in the Chinese market. Interestingly, Lenovo still is yet to launch its handsets in the US and in many other markets.
Reliance on home market
According to analysts, Lenovo continues to heavily rely on sales at its home market, which accounted for over 95% of its total handset sales in the recent quarter. They assert that there could be future uncertainty as the Chinese smartphone market is expected to slow down and decelerate by 2015.
But Lenovo could be well prepared for that possibility. In fact, it has been trying to find other sources of potential growth in the future. The company reportedly expressed interest to acquire BlackBerry Ltd. But according to sources, that offer was turned down because the Canadian government reportedly interfered amid its concerns about possible security issues that may arise from handing over BlackBerry to a Chinese business.
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