Lenovo to focus on non-PC business in the next decade

Lenovo Group Ltd is to focus on non-PC business development in the next decade, seeking business opportunities such as new-tech basic infrastructure construction and 5G, the world’s No. 1 personal computer vendor said on Tuesday.

The PC industry saw sales decrease by about 10 percent in the first quarter.

“It’s a challenging year ahead. But the things don’t kill us will make us strong," Yang Yuanqing, Lenovo’s chairman, said during a broadcast conference on Tuesday.

Yang revealed the company’s 3S strategy for the next decade, referring to Smart Internet of Things, Smart Infrastructure and Smart Verticals.

In the coming year, Lenovo’s software and service business will grow 20 percent year on year, Yang said. The Smart Infrastructure business will have rapid growth with China’s national strategy to develop new-tech infrastructure. The company plans to have over 100 commercial or enterprise 5G customers, Yang added.

Lenovo’s service revenue will double in the coming year while its investment business is expected to bring US$100 million investment returns annually from this year, according to Lenovo’s senior executives.

In the first quarter, global PC sales were 53.2 million units, a 9.8 percent decrease from a year ago, according to researcher International Data Corp.

Lenovo is the global PC market leader with 24.1 percent, followed by HP’s 22 percent and Dell’s 19.7 percent, IDC said.

In China, Lenovo is still the dominate player in the industry, with a share of the domestic market of over 40 percent.