Lenovo Announced Plans New Subsidairy On Smart Devices And Services

Kuala Lumpur – Today, Chinese tech giant Lenovo announced plans to establish a new subsidiary company that will focus exclusively on creating smart devices and services.

The new company, which will operate under a different name and branding, will begin operation on April 1, 2015. Taking the helm of this new company will be Chen Xudong, who is currently Lenovo’s president of China geography and Asia Pacific–emerging markets.

The company’s press release about the decision explains:


The objective of this move is to help Lenovo attack the fast growing consumer mobile device market in China, with a focus not only on devices, but also on software and application development and close customer engagement. Currently Lenovo has a leading smartphone business, which sells mainly through open market sales and carrier relationships. While Lenovo has and continues to strengthen its own company-branded online channels as part of its go-to-market strategy, the new company will exclusively focus on direct-to-consumer sales, marketing and product development using an internet-based business model.


In other words, it sounds like Lenovo wants to take a page out of Xiaomi’s book, and start a hipper brand that’s completely focused on smart devices and only sells directly to consumers via its online store.

And although the company hasn’t said this, it also seems likely that this new company’s focus will be on Asian markets, at least to begin with. Given Lenovo’s base in China, the new company’s direct-to-consumer approach will be easier logistically if its consumers are based in Asia. Moreover, the appointment of Chen Xudong as CEO suggests that Lenovo wants someone intimately familiar with local markets to steer this new brand.

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