Lenovo mobile push could hurt PC side

The PC maker could weaken its core business with new efforts to play a leading role in handheld devices in China and beyond.

Lenovo's purchase of the mobile phone arm it sold off last year signals its intention to penetrate the global market, but the move could dilute its core computer business, according to a Shanghai-based analyst.

The Chinese computer maker last week announced it bought back Lenovo Mobile Communication Technology in a deal worth $200 million in cash and Lenovo shares. It had sold the business unit to a group of investors in early 2008.

In a statement, Lenovo said it plans to capitalize on combined synergies from the two companies in product innovation, manufacturing, channels, and retail "to lead the market for new mobile handheld devices in China."

But Shaun Rein, managing director of China Market Research, noted that Lenovo may be interested in more than just the local market, and its global ambitions could be driven by demands from its private investor shareholders.

Read more of "Lenovo mobile hopes threaten PC biz at ZDNet Asia.