With great expectations, the Magic Factory, a subsidiary corporation of Lenovo Group, has officially opened.

The Lenovo Group announced the internet-based Magic Factory last October as an important driving force for its transition from hardware to the Internet. The Magic Factory operates smart phones, smart hardware, and smart home products over the Internet.

Launched last December, the Magic Factory is a new subsidiary of Lenovo with a broad business area including smart phone and mobile internet business, smart ecosystems covering modems, wearable devices, and smart home products, and the electronic commerce.

Chen Xudong, CEO of the company said, "The Magic Factory is a platform with two missions. One mission is to help small businesses develop innovative products. The other mission is to provide traditional enterprises with technological proposals based on the cloud."

To make it simple, the Magic Factory can be seen as an innovative incubator. The company officially launched its first products on March 26. The two smart home products were– “newifi mini”, a smart modem that does not need installation, and “new home”, a smart home package.

The establishment of the Magic Factory is an important step for Lenovo's transition to the mobile internet. As early as last July, Lenovo announced a New Business Development (NBD) platform to provide opportunities to help businesses turn ideas into real products and to assist traditional enterprises to transit to the mobile internet.

The NBD has been merged into the Magic Factory after the establishment of the company. Based on the mobile internet, the Magic Factory serves as a major engine in the era of the Internet of goods.

The NBD launched three products –smart glasses, smart air purifiers, and smart modems - before the establishment of the Magic Factory. Modems have long been seen as an important entrance, since all devices will have to connect to a modem in the future.