text: In September 2012, Lenovo agreed to acquire the United States-based software company Stoneware, in its first software acquisition. The transaction was expected to close by the end of 2012; no financial details have been disclosed. Lenovo said that the company was acquired in order to gain access to new technology and that Stoneware is not expected to significantly affect earnings. More specifically, Stoneware was acquired to further Lenovo's efforts to improve and expand its cloud-computing services. For the two years prior to its acquisition, Stoneware partnered with Lenovo to sell its software. During this period Stoneware's sales doubled. Stoneware was founded in 2000. As of September 2012, Stoneware is based in Carmel, Indiana and has 67 employees.
  Lenovo re-entered the smartphone market in 2012 and quickly became the largest vendor of smartphones in mainland China. Entry into the smartphone market was paired with a change of strategy from "the one-size-fits-all" to a diverse portfolio of devices. These changes were driven by the popularity of Apple's iPhone and Lenovo's desire to increase its market share in mainland China. Lenovo surpassed Apple Inc. to become the No. 2 provider of smartphones in the domestic Chinese market in 2012. However, with approximately 100 smartphone brands sold in China, this only equated to a 10.4% market share.
  In May 2012, Lenovo announced an investment of US$793 million in the construction of a mobile phone manufacturing and R&D facility in Wuhan, Hubei.