The China market is dominated by Lenovo and XiaoMi. Recently, XiaoMi has stolen the number one spot from Lenovo but it seems that the company is not giving up so quickly. Lenovo is working on a brand new smartphone brand to take XiaoMi head on.
There’s not much we know about the company. What we do know is that this new brand will be launching next year in April. Lenovo’s new company is set to focus solely on online sales, while keeping emphasis on branded applications and consumer engagement. Not to worry, Lenovo did ensure that notify the public that its gadgets will still be sold through retailers and carriers.
By selling gadgets solely online, the overhead costs will be reduced significantly that one would have with a traditional business plan. With a new brand, Lenovo can get creative and take some risks without it negatively impacting its core brand. This might just be a very profiting move by the company in the long run. It might just be the boost Lenovo needs to dethrone XiaoMi.