Lenovo planning to invest about 5 billion yuan ($793 million) in an integrated mobile devices facility in China over the period of next five years in order to meet rising global demands of smartphones as well as tablet computers. The facility is scheduled to begin operations in October 2013, the company told Reuters.
“As an industry leader, we are aggressively moving forward into the PC Plus era, and with our Mobile Internet Digital Home group actively engaged, we are accelerating development in smart phones, tablets, and other mobile Internet terminal markets,” said Yang Yuanqing, Lenovo Group chairman and CEO.
“We’re determined to firmly seize the tremendous opportunities for innovation in this market, so that Lenovo’s customers have even more opportunities to own our award-winning products, from PCs to mobile Internet devices. “When it begins operations, the Lenovo (Wuhan) Industrial Base will greatly improve our innovative capability and further optimize our supply chain, giving us a solid foundation to win in a broader market.”
Lenovo estimates that, by 2014, total sales revenue from the industrial base will reach $1.6 billion (RMB10 billion). The company is optimistic that figure will increase to reach $7.9 billion (RMB50 billion) within the next five years as the center plays a key part shaping its products.