UPDATE 1-Lenovo takes aim at mobile Internet, China market

* Says to develop more products for mobile Internet

* Aims to boost market share in home market
(Adds quote, details)

By Michael Wei and Doug Young

BEIJING, March 3 (BestGrowthStock) – China’s Lenovo (0992.HK: ), the
world’s No.4 personal computer maker, said it will develop more
products this year for the mobile Internet, attempting to gain
ground after a late start into the hot smartphone market.

Lenovo entered the mobile phone sector last year when it
repurchased a mobile unit it sold less than two years earlier.
It had originally sold the business to focus on its core PC
operations, but jumped back into the mobile market recognising
the growing convergence between smartphones and PCs.

Lenovo entered the smartphone market with a thin,
touchscreen device based on Google Inc (Read more about Google Stock Analysis)’s (GOOG.O: ) Android
operating system, which it debuted at the Consumer Electronics
Shows in January.

In doing so, it joined a growing cast of traditional
handset makers such as Dell (DELL.O: ) and Acer (2353.TW: ) using
the Google platform as they seek new opportunities in
smartphones.

“We launched a number of mobile Internet products at CES
and we’d like to be more productive in the segment,” Lenovo CEO
Yang Yuanqing told reporters on the sidelines of the opening
session of the annual Chinese People’s Political Consultative
Conference on Wednesday.

Yang also said Lenovo aims to gain market share in its home
China market, where it now controls about a third of the
market, as it returns to its roots as an emerging market
specialist following its less than successful purchase of IBM’s
(IBM.N: ) PC assets.

“The Chinese market is growing very fast,” he said. “I’m
confident we can grow our market share.”

Lenovo previously said its China sales jumped 41 percent in
October-December as it and its peers benefited from China’s 4
trillion yuan ($585 billion) stimulus spending package, partly
aimed at encouraging the public sector and rural consumers to
buy more electronic products.

A rising profit margin in the final 2009 quarter helped
Lenovo post net profit of $79.5 million, reversing a net loss
of $96.7 million a year ago, marking a fledgling turnaround for
the biggest player in China’s PC market.

Stock Market Analysis

(Editing by Ken Wills and Ian Geoghegan)

UPDATE 1-Lenovo takes aim at mobile Internet, China market