Lenovo is set to turn the first profit from its Chinese smartphone business, enabling it to drive its expansion into emerging markets internationally, Bloomberg reported.

According to the publication, Yang Yuanqing, its CEO, said the company will make money from the unit “very soon”. However, its overseas expansion prompted concern from analysts, due to the fact it will be incurring high start-up costs while not being able to leverage its home advantage.

In recent months, the ambitious Chinese company has moved into new markets such as India, Indonesia, Philippines, Russia and Vietnam.

Recent studies put Lenovo in second place in China’s high-end device market, behind Samsung, with observers suggesting that the top spot could be in its reach.

The company has partnerships with all three of China’s mobile operators, as well as strong sales and distribution channels of its own in the country.

But while it has a presence globally through its IT business, in terms of smartphones, Lenovo is moving into a fiercely competitive market where it does not have much of a track record.

For example, it will need to work hard to build relationships with operators and retailers in numerous countries, in the face of competition from established international players and, in markets such as India, local start-ups.

And with the company focusing on growth markets – it is looking to capitalise on the shift from feature phones to smartphones – this means it is also likely to see pressure on its pricing, especially as it looks to build market share.

Due to the size of the Chinese smartphone business, Lenovo will be able to use its scale in its home market to drive economies elsewhere – for example by offering localised variants of devices it already sells in some markets.

Coupled with the size of its other operations – and its potential in the global device space – it is also likely to be able to strike decent deals with its suppliers.