Chinese computer giant, Lenovo Group, has unveiled its strategy to expand into the mobile Internet market. The company also announced that it will release its first smart phone next month that aims to rival Apple's popular iPhone.

Lenovo's first smart phone, called "LePhone", is expected to hit market in May. It will cost between 3 to 4 thousand yuan.

The chairman of Lenovo Group, Liu Chuanzhi said, "We are ready for a fight with the iPhone. We will create Chinese mobile Internet devices."

Lenovo believes that China's mobile Internet market will see a robust growth in the near future, and will take a big share in the global market.

Lenovo is also strengthening cooperation with local partners including Sohu and Alibaba Group, both which provide domestic services for Lenovo products.

The CEO of Sohu.com, Zhang Zhaoyang said, "We are entering a new era of mobile Internet. We will strengthen cooperation to achieve a win-win situation."

Lenovo expects mobile Internet products to account for 10 to 20 percent of the company's revenue in five years.

In addition to the LePhone, Lenovo has also released other gadgets such as a smartbook dubbed Skylight and a new notebook, IdeaPad U1. All of the three new products highlight the concept of "human-centered", with a stylish appearance, Internet connection, and terminal-to-terminal services.

The LePhone has a modified version of Google's Android system, favoring Chinese Internet applications. The device includes "push" e-mail that's delivered without any action on the user's part. Lenovo says LePhone will cost less than the iPhone, and will be available in overseas markets in the future. The Skylight is an ARM-based processor and the IdeaPad U1 has a detachable screen.

Lenovo's chief executive, Yang Yuanqing, has expressed confidence in the company's mobile Internet strategy. He says Lenovo will expand its presence outside its traditional P-C turf.

Yang said, "I think that it's a time for the mobile Internet market to experience robust growth. The mobile Internet device market will overtake traditional PCs in the next five years. Lenovo would like to achieve a balanced development in the PC business and mobile Internet device business, as well as I-T products tailor-made for enterprises, such as servers and memory chips."