China's largest PC producer Lenovo has fixed on its next goal - becoming the leader of the global PC industry.

Lenovo CEO Steve Ward said on August 30 the company would sell Lenovo personal computers on overseas markets from the first quarter next year. "This would be part of Lenovo's long-term strategy to build world leading PC brand.", said Steve Ward. The new Lenovo hopes to become the No.1 in the world PC industry within five years and make Lenovo an international brand.

Currently, there are two keys to this goal. The first is to expand business and the second is to further squeeze cost. Before this the effort to slash cost has resulted in gratifying financial performance of the former IBM PC business. Net profits of the company as a whole increased from 336.8 million HK dollars before the merger to 357 million HK dollars (about $66.63 million).

Steve Ward believes there is still room for cost squeezing while in India, China and Brazil growth of burgeoning markets brings much hope to the company. In North America - the base of former IBM PC department, new Lenovo's sales in last quarter slipped somewhat due to uncertainties the market felt for the merger. However, Steve Ward said this trend has been reversed.

Lenovo is devoting 1.5 percent of its annual revenues to R&D, a percentage two times higher than the average level in the industry. The new Lenovo is planning to set up new R&D centers in North Carolina and Beijing.

By People's Daily Online