Lenovo is looking into acquiring smartphone companies: Apple and other small fry

In order to keep on developing new products and stay at the cutting edge of technology, companies need to expand by increasing in-house R&D, contract out product development, form partnerships or make acquisitions.  The Beijing based technology company, Lenovo, has bucked the trend of most computer manufacturers and has seen growth since 2011. It has also increase its market share of mobile devices.

The iconic ThinkPad trademark became part of Lenovo's product line in 2005 and the the team's innovations continue to shine. There are high hopes for the potential new acquisition. A recent report suggests that Lenovo is making acquisitions of smartphone manufacturers. Blackberry may be too troublesome, albeit its great array of patents, but the Taiwanese manufacturer HTC may also be in Lenovo's sights. The acquisition of a HTC by Chinese company will not only stir up the technology industry, but also fire up the nationalist debate around the China-Taiwan ongoing cultural, political and economic integration.

With the regard to the purchase of Apple, Lenovo may not have to wait long. As Apple is losing market share in smartphones as well as tablet computers, the obstacles remain cost and politics. Even falling to near half of its peak value in 2012, Apple (APPL) is overvalued and investors, like consumers, are being shown less reasons to jump on the bandwagon. As for the political aspect that may make the acquisition doubtful, there are security issues: American lawmakers have proved to be reluctant to the presence of Chinese. companies such as Huawei, in the domestic market. The acquisition of Apple by  Lenovo may also be dissonant with one brand's perception which reflects vanity, entitlement and a lack of responsibility, to the other image of traditional values such as hard work, frugality and modesty.