Lenovo takes control of Chinese mobile outfit

LENOVO HAS BOUGHT BACK all the shares of Lenovo Mobile Communication Technology from a group of investors that controlled it just two years after Lenovo flogged the outfit.

It has cost Lenovo $200 million to buy Lenovo Mobile back and is being seen as a signal that the outfit is gearing up its efforts in the burgeoning mobile Internet market in China.

Lenovo Mobile now ranks third in China's mobile handset market and is currently the leading domestic brand.

The Chinese market is growing like topsy thanks mostly to investment by the Chinese government. It is therefore not surprising that Lenovo wants more control over what it does in that space.

Industry analysts project the China mobile Internet market will grow to exceed $16 billion by 2014, fueled by the rapid evolution of 3G mobile broadband and accompanying multimedia Internet services.

Yang Yuanqing, CEO of Lenovo Group, said that as Lenovo's global PC business continues to make steady progress he views mobile Internet as a key growth opportunity moving forward globally. He promised to release new products in China soon. It will use Lenovo's brand and channel along with Lenovo Mobile's contacts in the mobile industry.

Of course one has to wonder what Lenovo was smoking when it dumped Lenovo Mobile in March 2008.

The excuse then was that Lenovo wanted to refocus on its core PC business. Now it seems that it has changed its mind. µ