Lenovo Group believes emerging markets will create growth opportunities

Lenovo Group Ltd. (LNVGY, Lenovo Group) believes that emerging markets will provide a growth path as demand for PCs and smartphones slows.

Lenovo’s chief executive Yang Yuanqing recently interviewed the World Economic Forum in Davos, Switzerland, saying that the company still sees growth opportunities in most emerging markets. As measured by shipments, Lenovo Group is the world's largest supplier of personal computers.

This is at a time when the Chinese electronics manufacturer continues to face a weak global PC and Chinese smartphone market. After acquiring the Motorola Mobility smartphone business and the low-end server business of International Business Machines (IBM), Lenovo is consolidating these businesses.

Yang Yuanqing said that in the case of China's economic slowdown, he believes that India, the Middle East and Africa have great growth opportunities, and he also said that he is still optimistic about the growth of emerging markets.

Yang Yuanqing said that he intends to use the Motorola brand of Lenovo to enter the US smartphone market. He pointed out that Lenovo Group will release a more innovative and attractive device for American consumers in July.

Personal computer sales have declined due to the global consumer preference for smaller devices. According to International Data Corporation (IDC), in the fourth quarter of 2015, PC sales fell to its lowest level since 2007. In 2007 Apple Inc. launched the iPhone.

But Yang Yuanqing believes that smartphone users in emerging markets will eventually turn to personal computers. He said that all users with smartphones will find that PCs are a more powerful and full-featured device that will sooner or later upgrade to a PC.