Telco looks to expand (2)

"We will keep our advantage in the high-end market and attach equal importance to the entry-level market," Wen said.

The boom in smartphone use means huge market for handset producers. China has surpassed the US to lead the world in smartphone shipments in the third quarter with 23.9 million units, according to a report from US consulting firm Strategy Analytics.

Domestic handset producers are gearing up for a bigger share in the entry-level smartphone market. Xiaomi Technology, Meizu Co and search engine Baidu also launched smartphone models recently.

But experts believe the high-end market will still be dominated by big names like Apple, Samsung and HTC. "Lenovo, which enjoys advantages in both product quality and brand recognition, is most likely to gain a foothold in the high-end market," Shen noted.