MSI Motorola Solutions Inc

By Rebecca Blumenstein and Khadeeja Safdar 

Lenovo Group Ltd. sees emerging markets as a path to growth amid a slowdown in demand for personal computers and smartphones.

"In most emerging markets, we still see growth opportunity," Chief Executive Yuanqing Yang said in a recent interview on the sidelines of the World Economic Forum in Davos, Switzerland. Lenovo is the world's top PC vendor by shipments.

The remarks come as the Chinese electronics maker continues to grapple with weakness in the global personal computer and China smartphone markets while it integrates the acquisitions of Motorola Mobility's smartphone business and International Business Machines Corp.'s low-end server business.

With the slowdown in China, Mr. Yang said he sees substantial opportunity for growth in India, Middle East and Africa. "I'm still optimistic in emerging-market growth," he said.

Mr. Yang said he intends to leverage Lenovo's Motorola brand to penetrate the smartphone market in the U.S. The company is launching a "more innovative, more attractive" device in July aimed at U.S. consumers, he noted.

Mr. Yang predicted that Apple Inc. has reached a ceiling in the U.S. market, while Android still has room for growth. "Apple already has more than 50% share in the U.S. Can you expect more? I don't think so," he said. "I think Android will take more share."

Apple reported Tuesday that iPhone sales grew at the slowest pace since its introduction in 2007 and forecast that revenue in the current quarter will decline for the first time in 13 years.

An Apple spokesperson declined to comment.

PC sales have also declined as consumers globally opt for smaller devices. Sales of personal computers fell in the final quarter of 2015 to their lowest level since 2007, the year Apple Inc. introduced the iPhone, according to International Data Corp.

But Mr. Yang is betting smartphone users in emerging markets will eventually shift to PCs. "Everybody who owns the smartphone will find the PC is a more powerful, full function device," he said. "Sooner or later, they will upgrade to a PC."

Write to Rebecca Blumenstein at rebecca.blumenstein@wsj.com and Khadeeja Safdar at khadeeja.safdar@wsj.com

(END) Dow Jones Newswires

January 27, 2016 19:54 ET (00:54 GMT)

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