Lenovo is buying back the mobile-phone division that it sold off last year. It sold the money-losing division in January 2008 for US$100 million. It will now buy it back for US$200 million.
Today’s announcement signals that Lenovo is gearing up its efforts in the burgeoning mobile Internet market in China. Lenovo Mobile now ranks No.3 in China’s mobile handset market and is the No.1 domestic brand.
The handset division made a profit last year as demand in China continued to grow. Estimates now suggest that China mobile Internet market could top US$16 billion by 2014.
Lenovo will first focus on growing its market share in China. Later, it will offer its handsets globally.