Taobao Cooperates with Lenovo Mobile on Mobile Shopping

The China mobile phone, which will be preloaded with Taobao applications, will be launched by China’s largest online retailer, Taobao with Lenovo Mobile. It will enable users to shop wirelessly and will be launched within a month, targeted at the Chinese mobile shopping market.

China’s online shopping industry grew 90 percent in the third quarter from a year ago to transactions worth 65.9 billion yuan ($9.64 billion), according to data from research firm iResearch. Taobao had 82.8 percent of the market.
Taobao, which does not charge listing fees for users wanting to sell their items on its auction site, said in September its 2009 sales are expected to more than double from 300 to 400 million yuan.
Lenovo spun off its mobile phone unit in 2008, saying at the time that the move was designed to help it return to its focus as a PC maker.
“We believe the convergence of mobile Internet devices and PCs is a global trend,” Wong Wai Ming, Lenovo’s chief financial officer, told reporters. “We really want to grow very fast in this area, and will spend appropriately.”
Lenovo said it would pay its parent company Legend Holdings $154 million in cash and issue about 80.9 million shares at HK$4.407 to buy back Lenovo Mobile Phone.
The company will first begin selling its handsets in its home base of China, where it is currently the market leader in the PC business, before expanding to other markets.
“We ourselves want to identify a market where we have a great chance of success,” Wong said. “Initially, we will look at China, but Lenovo today is a global company, and we will look at developing globally.”

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