Lenovo redraws business lines as its product range grows

PUBLISHED : Monday, 07 January, 2013, 12:00am
UPDATED : Monday, 07 January, 2013, 4:31am

Lenovo, the world's largest supplier of personal computers, has reportedly split its main business into two to handle its growing range of products, according to the Beijing News yesterday, citing an internal e-mail from chief executive Yang Yuanqing.

The Lenovo group would focus on the computer, mobile internet and digital household businesses under the same name, while the Think group would look after high-end corporate customers, focusing on Think products, Yang said in the e-mail. He said the move would help improve and simplify Lenovo's brand strategy, according to the report.

The Think brand, which Lenovo acquired from International Business Machines in 2005, has the same premium cachet as Apple. This move should help expand Lenovo's global market share in PCs, smartphones and media tablets, and clarify the different target markets between Lenovo and Think, said independent market commentator Xiang Ligang.

"It makes good business sense. Lenovo may help the company to achieve sales volume while Think focuses on the high-end market," Xiang said. "It is just like Lexus, which is separated from Toyota."

Yang has aimed for Lenovo to be competitive in the high end and in mobile internet devices.

The firm has already released IdeaPad tablets for the mainstream markets and ThinkPad tablets for the premium market, competing directly with Apple and Samsung Electronics. It is expected to narrow the gap with Apple in the shipments of "smart" internet-connected devices in coming years due to strong mainland sales.

Liu Jun, senior vice-president and head of the MIDH division, will oversee the Lenovo group while Peter Hortensius, senior vice-president and head of the product division, will lead the Think group.