Lenovo eyes acquisitions to grow
0 Comment(s)
Print
E-mail Agencies via Shanghai Daily, September 4, 2012
Lenovo Group Ltd Monday said it will consider acquisitions to drive growth and build competence as the world's second-largest personal computer maker expands in new areas such as mobile devices.
"We would fully leverage this tool if the target is consistent with our strategy," CEO Yang Yuanqing said in an interview on Friday. "Any area which is consistent with our strategy where we are weak, we would like to consider acquisitions."
As Lenovo gets closer to its goal of passing market leader Hewlett-Packard Co in global computer shipments, Yang is looking at ways to sustain the fastest annual pace in sales growth in six years. The company, which overtook Apple Inc in the three months through June for second place in smartphone sales in China, will introduce 40 phone models in the fiscal year started next April 1, Yang said.
Vincent Chen, an analyst at Yuanta Securities Co in Taipei, said: "The mobile business, tablets and smartphones, are crucial for its long-term outlook, given the slowdown in global PC demand."
Shares of Lenovo jumped 3.8 percent in Hong Kong to close at HK$6.54 (84 US cents), their biggest gain since August 17. The shares have gained 26 percent this year, while the Hang Seng Index rose 6.1 percent.
Lenovo, which bought the PC division of International Business Machines Corp in 2005, boosted sales last year by buying control of Medion AG, a Germany-based computer maker, and the PC unit of Tokyo-based NEC Corp. Sales rose 37 percent to US$29.6 billion in the year ended on March 31, the fastest rate since the 12 months through March 2006.
Now, Yang is stepping up development of smartphones, tablets and Internet-ready televisions to widen the company's offerings, following Apple and Samsung. He declined to comment on specific potential acquisitions in the interview.
The company, whose headquarters are in Beijing and Morrisville, North Carolina, will introduce a wider array of phone models this fiscal year, Yang said.
Go to Forum >>0 Comment(s)