Instead of PCs, Lenovo expects the ever-growing market for 7-inch tablets to compete with large-screen smartphones.
During the company's second-quarter earnings conference call, Lenovo Chief Executive Yang Yuanqing said he had read a report on Apple's iPad Mini and was optimistic in terms of the continuous trend in the tablet market.
"The market accepts the 7-inch [tablet] better than the 10-inch. That's a very strong signal, the tablet will not replace the traditional PC," he said. "Probably, the tablet will compete with the large-screen smartphone rather than the PC."
DisplaySearch said in a research note that future smartphones will feature 5-inch displays with a 1,920×1,080 pixel density. Devices such as the 4.8-inch Samsung Galaxy S3 boasts a 4.8-inch screen with a 1,280x720 resolution. HTC has released its own 5-inch device in the form of the Butterfly, while Sony is due to release its own device with the same screen size next year.
Yuanqing also discussed touch screens arriving for Windows 8-powered laptops. "Touch will become a very popular feature on the traditional PC. We can't guarantee we'll get 100 percent of what we want to get [but] we are definitely trying our best to get enough supply."
Lenovo stressed that the so-called convertibles (laptops that can be converted into a tablet) will become more popular than traditional laptops with touch screens.