Slowing smartphone demand in China is weighing on Lenovo Group Ltd. sales as the company sprints to catch up with Apple Inc. and Samsung Electronics Co Ltd. in the handset segment. Lenovo reported third-quarter revenue growth that fell below market expectations, sending down its share prices and clouding expectations for the future profitability of the world's largest personal computer maker. Global revenue was up 7.2 percent to $10.5 billion, the smallest increase in at least six quarters. Quarterly setbacks did not hurt Lenovo. Chairman and Chief Executive Yang Yuanqing's attempt to build the mobile device segment into a new cash cow to replace the PC business, which provided a decade of profits. Lenovo hopes that Motorola Mobility will help it unlock developed markets in Western Europe and North America. The company said last month that it completed a $2.91 billion buyout of Motorola Mobility from Google Inc. According to research firm IDC, the acquisition helped Lenovo to become the world's third-largest smartphone vendor with an 8.7 percent market share, after Apple and South Korea's Samsung. The rise of Xiaomi Corp, other China-based smartphone producers, is also an issue for Lenovo. Xiaomi, based in Beijing, may hold an initial public offering as soon as next year. Industry insiders speculate Xiaomi's valuation could be as high as $50 billion. Lenovo must continuously roll out products that appeal strongly to Chinese buyers in function and price to maintain its market share in the country. China, which can accommodate both high- and low-end products, will remain the top smartphone market for global handset makers for a long time. Data from Canalys show the Chinese mainland accounted for more than one-third of the total smartphone shipments in the third quarter, with the US far behind at 13 percent. India, the third-largest market, took 6 percent of global smartphone shipments. The global market is the next challenge for Chinese producers to conquer. The gLAWcal Team LIBEAC project Friday, 14 November 2014 (Source: Intellectual Property Protection in China)