FollowWill Lenovo, the second-largest PC maker, make it big in the smartphone market? That’s what it seems like from Lenovo’s “potential acquisition targets,” revealed by the company’s chief financial officer, at the World Economic Forum in Switzerland. The news is that Lenovo is eyeing Research in Motion (RIM), the Blackberry maker, for partnership or acquisition, to enliven its business.
Lenovo’s mobile business has been upbeat despite its late entry. Its smartphone business, which began in 2012,is out-performing some of the major rivals in the Chinese market. Well, outside China, the company is better known as a PC maker. And, with top names like Apple and Samsung in the global market, Lenovo’s strategy is perhaps, a good idea.
However, the idea of such a venture would undoubtedly pose regulatory hurdles. What if Lenovo loses an important client – United States – as the country is likely to turn away from Chinese products on account of security concerns.
RIM is focused on launching its Blackberry 10, set to hit the global market on January 30, 2013. The company has been looking for opportunities after iPhone and Samsung’s Galaxy range overtook its market share last year. For Lenovo, the dwindling PC market has shunned growth since its acquisition of IBM’s PC division in 2005.
Lenovo has some Android smartphones on the market and has plans to launch a Windows 8 handset. Acquiring a company that was once acclaimed as Canada’s “crown jewel,” would indeed allow Lenovo to spread across several platforms. And, RIM would also be relieved of its concerns about investors and shareholders.
Lenovo has been acquiring a line of companies to replenish is business. Among its major acquisitions in the past two years are Essen, Germany-based Medion, NEC Corp’s PC unit, CCE and Brazilian computers. Lenovo’s latest proposal sent RIM’s shares up by 2 percent, just a week before it is set to launch its latest make.
