By Herman Lai, posted Mar 19, 2011 at 7:41 PM, 236 views,

Lenovo To Offer Mobile-Internet Video Service In The Future

China’s biggest computer maker, Lenovo had taken a forward step into Internet video by partnership with SMG (Shanghai Media Group) to establish a new firm to provide Internet-video service. On Thursday, under an agreement of the joint venture, SMG owned 51 percent of the venture, and named Shanghai Video Cloud Company Limited, while Lenovo owns the remainder. The total investment of both parties in the new firm exceeded 10 million yuan (1.52 million U.S. dollars).

“Consumers nowadays are no longer satisfied with traditional television,” said by Yang Yuanqing, chief executive officer of Lenovo. More than 10 million Chinese consumers will use Internet-based television in the next two to three years, he said, creating a huge market potential for companies such as Lenovo.

“Lenovo’s expansion into the television market is in line with the industry trend that the domination of the traditional personal computer is being replaced by new devices such as smartphones, tablet computers and Internet TV,” said Simon Ye, an analyst with the research firm Gartner.

Lenovo had been distributed its products into groups. Since last year, the company began to launch a variety of new devices, including the smartphone LePhone and the tablet computer LePad. In January this year, a new business section was established by Lenovo to focus on digital technologies, which are the Mobile Internet and Digital Home Business Group (MIDH). In the future, Lenovo’s four pillars will be the traditional computer, mobile phones, tablet computers and television.

Yang added, he is worrying about the interruption of components supply for the next quarter of the year due to Japan’s earthquake, and expecting the delivery of products and the Japanese PC market will both be affected.

Source: ChinaDaily