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Lenovo bets on emerging markets to ride out recession

By Ding Qingfen and Li Weitao (chinadaily.com.cn)
Updated: 2009-03-03 17:02

Chinese flagship computer maker Lenovo will focus on product innovation and emerging markets to cope with a slowing global economy that has eaten into its profits, Chief Executive Yang Yuanqing said on Tuesday.

On the sidelines of the annual sessions of the Chinese People's Political Consultative Conference (CPPCC), which opened on Tuesday, Yang said Lenovo will export its successful business model in China into emerging markets such as Russia and Brazil.

Lenovo posted a record net loss of $96.7 million in the third quarter ending Dec 31, 2008, its first loss after the company's high-profile acquisition of IBM's PC-making business in 2005. The loss was largely due to the cost-cutting moves by Lenovo's corporate customers in the West.

The loss forced Lenovo to dramatically reshuffle its management team in February by appointing company founder Liu Chuanzhi as chairman, replacing Yang. Yang was then appointed CEO, replacing former Dell executive William Amelio.

"We are now prioritizing long-term growth, instead of short-term growth as we did before," Yang said.
 
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