As you might remember that back in October last year, Lenovo had revealed that it plans to establish an online-only smartphone brand in China. Now, a Bloomberg report claims that this brand will be called “Shenqi” and will start its operations in April this year. While the new brand has no name in English at this point, Shenqi means “magical” or “miraculous” in Chinese.
According to Bloomberg, the brand will not only sell smartphones, but other smart devices as well, same as Xiaomi, which has emerged as a big threat to the companies like Lenovo.
“We want to try a new way to nurture and incubate business. Smartphones will be just one of the devices for this new startup company and it will be backed not only with Lenovo money, but also will get money from capital markets,” Lenovo CEO Yang Yuanqing told Bloomberg.
Same as Xiaomi, Shenqi will use direct-to-consumer approach, which is hard to achieve within the current set-up of Lenovo. “We want to build a pure Internet-oriented model. If we do this kind of model within the current Lenovo, there is a lot of conflict with existing channels and carrier partners. With a different team mechanism, we can do whatever we want,” Yang noted.
No other details are available at this point, but we hope to hear more from Lenovo in the coming months.