Lenovo to enter OEM mobile business

LENOVOA report said that Lenovo, which has considerable smartphone manufacturing facilities but has failed to make a major dent in the market, has decided to become an original equipment manufacturer (OEM) and make its own.

A report from Digitimes, citing “industry sources” is integral to the restructuring of its smartphone business.

Lenovo is facing stiff competition from companies including Xiaomi and Huawei, the report said.

But the entry of Lenovo into manufacturing is likely to affect Taiwanese OEMs it had used before, including giant manufacturer Compal.

Most analysts believe that the smartphone market is pretty well saturated and faced with stiff competition from Chinese manufacturers, giants like Samsung and big outfits like HTC have felt the pain.

But if the reports are correct, it’s hard to see how Lenovo will turn the market round, particularly as manufacturing is rather top heavy at the moment.