Lenovo eyes emerging markets in overseas push for smartphone sales
Smartphone maker aims to gain overseas experience before taking on the US
The Lenovo Group, the world's second-largest computer maker, says it will bring smartphones to India, the Philippines and Indonesia to gain more experience before entering developed markets such as the United States.
Lenovo, which started smartphone sales 2½ years ago in China, was ready to expand outside its home market, said Milko Van Duijl, president for the Asia-Pacific and Latin America regions.
It had found distribution partners in the three developing countries, Van Duijl said.
Moving to emerging markets first would help the company expand its business while avoiding expensive marketing and intellectual-property hurdles in the US and western Europe, he said.
Lenovo will draw on its experience selling devices in rural parts of China, where its smartphones overtook Apple's iPhone for the second-biggest market share in the second quarter, research firm IDC says.
"It makes sense for Lenovo to perfect the product portfolio in emerging markets where distribution matters more than carriers, establish a brand, and then attack the US market," said Kishore Suratkal, an analyst at Religare Capital Markets.
