, the world’s No. 4 PC maker, is expanding beyond the hardware business.

In a report from SinoCast published in Investor’s Business Daily on Tuesday, Lenovo China President Chen Xudong says the company already has expertise in software which it incorporates into its growing lineup of devices.

Lenovo recently launched the Lephone smartphone in China. It also spun out a new company that is to develop a videogame platform. Applications will focus on mobile Internet use, which Lenovo’s top executives have stressed is the company’s primary future opportunity.

Lenovo says it already has more than 200 companies working with it for Lephone applications. SAP is among them.

Lenovo, which operates its headquarters in Morrisville but maintains most of its operations in China, has grown its global PC market share to more than 10 percent in each of the last two quarters. The report noted that 98 percent of Lenovo’s revenues come from its PC group.

It will now offer applications solutions, Chen said.

"We find increasing opportunities in the market today, although Lenovo Group appear to be nothing but a PC seller to most of the consumers," Chen said.

Application is hardly new at Lenovo, Chen pointed out.

"Lenovo Group made a winning start from application development if we traces back to the Lenovo history," he explained, "after that, the company set foot in the PC manufacturing and grew into a company specialized in PC making gradually."

Lenovo acquired IBM’s PC business five years ago.

For the full report in IBD,

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