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Rumor: Lenovo Eyes Entry into Component Manufacturing

Sohu IT, 10/08/12

According to a knowledgeable source, Chinese consumer electronics manufacturer Lenovo (0992.HK) will maintain or raise the proportion of the company's notebook computers that are self-manufactured by the company in 2013. The company also plans to foster relationships with domestic component manufacturers and may even consider an entry into the component manufacturing sector. With the shift in strategy, Lenovo will look to capture revenue lost to Taiwanese connector and low-end battery manufacturers.

Currently, Lenovo self-manufactures 30% to 50% of its notebook computers and sources the additional 50% to 70% of orders to Taiwanese consumer electronics manufacturers such as Compal, Quanta, and Wistron.

According to an industry insider, Lenovo is hoping to distinguish its products from competitors by better controlling product quality through in-house manufacturing. Lenovo's ThinkPad line of notebooks and upcoming Yoga tablet computer are all self-manufactured.

Keywords: Yoga hardware Lenovo notebook strategy Quanta Compal ThinkPad Wistron 0992.HK contract manufacturer

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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