Lenovo eating Apple, Samsung share in Asia

Lenovo is adopting an approach similar to Apples of opening outlets offering gleaming glass and wide counters found at Apple shops, with phones and tablets sitting on tables for customers to try out.

The retail outlets are part of a long term plan to overtake Samsung in the world’s biggest smartphone market, offering a range of devices in an environment different from the typical Chinese electronics shops. Chen Xudong, Lenovo’s president of China operations, compares to Apple and refers to a strategy that helped make the iPhone maker the world’s most valuable technology company.

“We want customers to feel free to play with the products, and that basically is quite similar” to Apple, Chen said for Bloomberg, at Lenovo’s headquarters in Beijing’s Haidian technology district. “The difference is we provide more choices for the customer.”

While both companies offer desktop and laptop computers, Lenovo’s stores could differentiate itself as offering one product line that Apple doesnt – smart televisions that connect to the Internet. On top of that Lenovo has six tablets starting as low as 999 yuan, or $162.

Analysts define Lenovo products as low cost but triggering less excitement among customers.

“Lenovo is learning from Apple in opening up its own stores to increase its influence with consumers and make Lenovo a more recognized brand,” said Wang Jun, an analyst with researcher Analysys International in Beijing. Still, Wang says, Lenovo isn’t “as cool” as Apple or Samsung.

The rising demand for affordable smartphones in the major emerging markets of India and China has helped local mobile manufacturers surpass shipments by the established global brands like Samsung and Apple in April-June quarter this year, research firm IDC says.

“In emerging markets like China and India, IDC has seen many local competitors spring up, but only in the last few quarters have we seen them aggressively scale up, competitive on both price and hardware specs like bigger screens.

Lenovo expects to open more of a franchise model stores, which will triple to 300 in the next three years, president Chen said. The company provides money, signs, furniture and design help to ensure partner outlets look like its company-owned locations, he said.

The company shares lost 0.14% on Friday. One year return of shares is more than 18%.