Perspectives  from local companies in their home markets are often very telling about the local mindset and where future trends are heading.

Personal-computer giant Lenovo Group Ltd. said it is confident about the long-term outlook for its business in China despite the slowdown in the country’s economic growth. They are focused on diversifying into smartphones and tablets as well as PCs and pushing emerging markets both within China and in greater Asia.


Lenovo Chief Executive Yang Yuanqing: “From a long-term perspective, I think PCs will continue to increase.”

China’s second-quarter gross domestic product released Monday showed the economy expanded 7.5% from the year earlier, slower than the 7.7% growth in the first quarter. 

“In the short term, (the economy) is definitely affecting our PC growth in China,” said Lenovo Chief Executive Yang Yuanqing at a news conference after the Chinese company’s annual shareholder meeting. “From a long-term perspective, I think PCs will continue to increase.”

Mr. Yang said Lenovo’s strong focus on smartphones and tablets in China will also help the company sustain its overall growth in the market. Lenovo overtook Hewlett-Packard Co. as the world’s largest PC vendor in the second quarter.

Since last year, Lenovo has been aggressively expanding its mobile device business. The company is already the second-largest smartphone vendor in China after Samsung Electronics Co., and it also sells handsets in emerging markets, mainly in Asia. In May, the company said that its aim was to sell 50 million smartphones and 10 million tablets in its current fiscal year through next March. “We are confident that we can meet those sales targets,” said Mr. Yang.

Lenovo Chief Financial Officer Wong Wai Ming said that Lenovo’s business in China isn’t limited to major cities like Shanghai or Beijing—what it calls mature markets within China. In areas outside urban centers, “there’s huge demand that has not been touched,” he said.

Read more about this from the Wall Street Journal here.