Lenovo to Boost Slumping Smartphone Sales with Revamped Manufacturing Supply Chain

Supply Chain Is Integral To Lenovo's Strategy

Lenovo CEO Yuangqing Yang, Source: blog.lenovo.com

Chinese technology giant Lenovo Group is planning to boost its slumping smartphone business with a revamped manufacturing supply chain and major global marketing strategy this year. According to Gartner Research firm,

Worldwide smartphone sales is expected to grow 7 percent this year, reaching 1.5 billion units cooling from 14.4 percent growth last year

Lenovo initially owned 6.4 percent of global market share before March 2015, and is now experiencing intense competition from mainland China and other large markets.

Lenovo started the restructuring of its mobile phone business since Q3 in 2015, including a $300 million write-off of its smartphone inventory. Lenovo is expected to have a big advantage over its competitors once the manufacturing supply chain of its smartphone business is fully implemented.

“We’re working to leverage our personal-computer supply chain know-how for the smartphone business,” said Gianfranco Lanci, Lenovo Chief Operating Officer.

This means that the assembly of products are in the same factory to save component costs and decrease production cycle times.

“What we’re trying to do is simplify our brand architecture, which means putting more marketing resources on the products which offer the most differentiation for Lenovo,” comments David Roman, Chief Marketing Officer at Lenovo.

The recovery in Lenovo’s smartphone business would also depend on the demand for its recently launched Phab2Pro, which is the world’s first smartphone with augmented reality technology.

A version of this appeared in South China Morning Post on June 21. Read the full article here.