Lenovo is creating a new smartphone brand to help it fend off Xiaomi in its native China.
Xiaomi and Lenovo are currently locked in a bitter battle for dominance of the massive Chinese smartphone market. It's all rather Apple vs Samsung.
One tactic that established giant Lenovo is set to employ to take on the young, fresh Xiaomi, is to create a new brand focused exclusively on selling mobile phones. As the Wall Street Journal reports, the new company will start this operation on April 1, 2015.
Xiaomi's meteoric rise can be attributed to its engaged marketing through social networks and forums, its funky and colourful designs, and the provision of its own strong software and services offering.
You can bet that the new Lenovo brand will look to ape some or even all of these elements. In particular, the new company will focus on selling its hardware and services online.
Lenovo insists that it will continue to sell phones under the Lenovo brand, which will be offered through the traditional operator and retail outlets. After all, Lenovo has become the world's fourth largest smartphone maker, to go with its title as the world's largest PC maker.
Lenovo also insists that the new company will be focused on the Chinese market. Lenovo's acquisition of Motorola seems to show that it has other plans for the West.
Both Lenovo and Xiaomi sell more phones in China than Samsung or Apple.
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