Lenovo hopes to replace Asus to make Google's next tablet
Staff Reporter 2012-10-09 12:16
A Lenovo notebook on display at a computer show. (File photo/Xinhua)
Chinese PC maker Lenovo has expressed strong interest in replacing Asus of Taiwan to partner Google in designing and making its next tablet PC. Google is reportedly more likely to continue working with Asus, however, since the Taiwanese company's cost control ability has helped Google make a profit on its Nexus 7 tablet despite its low price of US$199.
Lenovo reportedly sent a team to visit Andy Rubin, Google's senior vice president of mobile and digital content, to express its interest after noting that the partnership helped Asus boost its tablet shipments and market share in North America, according to our Chinese-language sister newspaper Commercial Times.
The Taiwanese PC maker has an R&D team of 600 people dedicated to tablet and smartphone development. Its ability in managing costs and its supply chain is seen as a major strength for its partnership with Google.
Asus' laptop sales in the North America market have also grown substantially due to the Google partnership, which has boosted its profile and brand in the region. Lenovo and other companies hope to follow in Asus' footsteps since Google previously changed partners for producing its Nexus smartphones from HTC to Samsung, reported Commercial Times.
Lenovo has set its sights on becoming the world's largest maker of personal computers, having acquired several companies this year such as the Brazil-based electronics company CCE and US-based software company Stoneware. Its subsidiary Linkcom, a joint-venture with Taiwan's Compal Electronics, is expected to begin mass production next year, while Lenovo's new factory in Whitsett, North Carolina is also scheduled to begin running in 2013.
Lenovo also plans to increase the ratio of its own-brand notebooks from 20% to 30%, prompting concerns that this will hurt Taiwanese parts and components makers. Lenovo may drop Taiwanese suppliers for counterparts in China since it controls the procurement of Linkcom with Compal only in charge of the firm's operations and management. Taiwanese makers of connectors and batteries will be affected substantially if Lenovo shifts its orders, according to Commercial Times.
