Since the Start of Xiaomi, just 4 years ago, they have taken a lot of market share from established chinese and global companies. Especially Chinese Phone Makers are struggling to find a solution to gain back sales versus Xiaomi’s dominant, high specs – low price strategy.

Some mobile manufacturers try to launch entire new low cost product lines, like Huawei with their Honor Brand. Others try to create a complete new brand of their own.

In a new report of the Wall Street Journal, WSJ have shown that Lenovo is taking the second option to target Xiaomi. Lenovo will create a complete new Mobile Phone Brand to tackle Xiaomi. Of course we dont have all details yet of the new Lenovo Brand, but the report says that Lenovo will launch their new sub-brand in April 2015. Chen Xudong, who is Lenovo’s president of China geography and Asia Pacific–emerging markets will be heading the new Brand.

In a recent Press Release Lenovo stated:

“The objective of this move is to help Lenovo attack the fast growing consumer mobile device market in China, with a focus not only on devices, but also on software and application development and close customer engagement. Currently Lenovo has a leading smartphone business, which sells mainly through open market sales and carrier relationships. While Lenovo has and continues to strengthen its own company-branded online channels as part of its go-to-market strategy, the new company will exclusively focus on direct-to-consumer sales, marketing and product development using an internet-based business model.”

Lenovo somehow got stuck in the middle. Less then two years ago they were famous for having good specs at low to medium prices like the A369i. While Xiaomi achieved to offer really high end specs for very attractive deals, we have the feeling that Lenovo struggles to really place themselves in the market. They launched some high end models, but those are priced at Apple Levels and above, and we doubt that many customers will choose Lenovo over Samsung or Apple at same price levels.

Lets hope that Lenovo will create an awesome new brand with high quality phones at reasonable prices for the users. With more competiton for Xiaomi, Meizu and Co definitely the users will win.