Lenovo (0992.HK), the world’s fourth-largest PC maker, said it will release its first smart phone next month, the Financial Times reported. The LePhone device will be based on Google’s (GOOG.NASDAQ) Android operating system and will target the consumer market segment currently purchasing iPhones and Blackberry devices. "We are ready for a fight with the iPhone," said Lenovo chairman Liu Chuanzhi. However, Apple (AAPL.NASDAQ, 0HDZ.LSE) is still expanding in China; in February it announced plans to open 25 retail stores in China. Lenovo bought back its mobile unit earlier this year, and now the company says that it expects to make up 20% of its revenues within the next five years, supported by mobile applications available from its new application store. Lenovo has significantly modified the Android operating system to support Chinese internet applications and will use Baidu as its preloaded search engine. No price has been given for the new product but some observers believe it will sell for under US$439.
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