Editorial Summary

Lenovo Mobile intends to switch its focus from market share to profit and enlarge research and development funding for "fashionable" products and 3.5 and 4G handsets, according to reports from China Business News and Nanfang Daily quoting Lenovo Mobile CEO Lu Yan. According to Hony Capital CEO John Zhao, Lenovo Mobile will go public soon. Zhao did not mention where or when the listing would occur. Hony Capital is sponsored by Lenovo (HK.992) parent Legend Holdings.

China Mobile (NYSE: CHL, 941.HK) has already begun selling one of Lenovo Mobile's 3G handset models and is expected to release the second model soon, reports Nanfang Daily. Lenovo Mobile saw handset shipments decrease 31 percent year-on-year in the period ending December 31, 2007. The company held approximately 5.9 percent of the Chinese handset market, ranking fourth in the industry, in the fourth quarter of 2007.