Lenovo Reacquires Mobile Phone Arm

Lenovo Mobile

After selling their mobile phone arm to a private equity firm for US$100 million in March 2008, Lenovo buys back Lenovo Mobile (the maker of China’s first OPhone handset) from the Hony Group for $200 million in cash and stock.  Upon its reacquisition, Lenovo Mobile is the third largest mobile phone manufacturer in China and is also the country’s leading domestic brand.

Lenovo Group CEO Yang Yuanqing stated that their company views mobile Internet as a key growth opportunity for them to move forward globally, which is ironic because they sold Lenovo Mobile to "refocus on their core PC business."

According to Lenovo, the reacquisition "reflects the changed market conditions of the past 18 months," as industry analysts project that China’s mobile Internet market will grow to exceed $16 billion by 2014, stimulated by the rapid development of 3G mobile broadband and multimedia Internet services.

Lenovo promises to release new products in China soon.

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