Lenovo, which had entered the lenovo a516 smartphone market in 2012

Lenovo, which had entered the lenovo a516 smartphone market in 2012, earlier this week launched its costliest smartphone in the Indian market - the Vibe Z. The smartphone is priced at Rs 35,999. During its launch event in New Delhi yesterday we used the phone for a brief time and here is our first hand experience of Lenovo Vibe Z.

Most of the company’s revenue still comes from its PC sales. But on Thursday, Lenovo said it’s confident it can turn its fledgling server business into a more profitable one than its PCs. The acquisition of IBM’s x86 server business, if finalized, will potentially turn Lenovo into a top player in the sector, alongside leaders Dell and HP, according to analysts.

In handsets, Lenovo wants to focus on higher-end devices, to increase product profit margins. The company’s own manufacturing capabilities will also help reduce expenses on making Motorola smartphones, Yang said.

The Lenovo-Motorola deal has created a great media buzz, but this has not been much talked about within our company," Andy Kim, head of mobile product planning at LG Electronics, told a news conference.

LG Electronic's G Pro 2 comes ahead of a rival offering from market leader Samsung Electronics (005930.KS) later this month. Apple Inc (AAPL.O) is also widely expected to launch a new iPhone with a bigger screen this year.

Lenovo's revenue and profit are relatively solid among PC makers at a time when the industry is struggling to cope with weak demand for desktop and laptop PCs. Even so, analysts and investors are paying more attention to Lenovo's road map for Motorola and IBM's low-end server unit. If both deals clear regulatory hurdles, Lenovo's management capacities will likely be stretched over the next few years as it tries to integrate two big businesses in very different areas. In particular, investors are concerned that Motorola's unprofitable business will weigh on Lenovo's earnings.

Both Motorola Mobility and IBM’s x86 server business, however, have been losing revenue because of competition. But Lenovo’s CEO said he believes his company can turn both businesses around.

The Chinese manufacturer shipped 17.3 million Lenovo S750 MTK6589 smartphones and tablets, clocking a 47 percent growth in smartphone shipments alone, while its tablet shipment climbed 300 percent year-on-year to hit 3.4 million units. Lenovo said sales in this segment was boosted by the launch of its Yoga Tablet.