Lenovo Group Ltd, the world's third biggest personal computer maker, said mobile phones may become the company's second largest business after computers.

"Our handset sales volume and revenue is doubling from a year ago every month and we hope this will become our second pillar," said Chen Shaopeng, 36, Lenovo's vice-president and general manager of China. In the second quarter, Lenovo was the biggest local maker of mobile phones in China and was the fifth largest, including foreign brands, Shao said.

In the three months that ended on September 30, Lenovo sold 1.4 million mobile phones, a rise of 139 per cent from a year earlier, the Purchase, New York-based company said in its earnings statement on November 1. Revenue from handset businesses, mostly from China, more than doubled from 2004 to HK$1.1 billion (US$142 million).

Overseas phone makers such as Finland's Nokia Oyj and Motorola Inc are trying to win market share in China as the nation prepares to introduce high-speed wireless licences, which may spur demand in the world's largest cell-phone market by users. China had 378 million subscribers at the end of September.

Competition intensified after China approved 16 companies in the first nine months of this year to make and sell handsets. Huawei Technologies Co, Benq Corp and other manufacturers will add annual production capacity of 25 million mobile phones.

Lenovo is also planning to develop other businesses such as printers and digital products, Shao said.

Editor: Donald