Lenovo and Microsoft announced plans to enhance their strategic cooperation and Lenovo will pre-install Microsoft's productivity applications such as Office, OneDrive, and Skype on some of its devices using the Android operating system.

Meanwhile, the two parties will implement cross-licensing of some device patents.

Lenovo expects to ship millions of such Android devices globally over the next few years. This move will enhance the cooperating relationship between Microsoft and Lenovo.

Nick Parker, vice president of Microsoft's OEM unit, said that Microsoft is glad that their productivity software will be pre-installed on Lenovo's high-quality devices. The marriage of Microsoft's apps and Lenovo's Android-based devices will enable customers around the world to be more productive and more connected.

Christian Eigen, Lenovo's leader of corporate alliances, said that Lenovo's collaboration with Microsoft will create new opportunities for their customers to take advantage of some of Microsoft's most popular apps. By installing Microsoft's apps and services on Lenovo devices, the company will offer more value to consumers around the world.

Two weeks ago, Lenovo Group said its global mobile phones sales dropped 31% in the second quarter compared with last year. It sold 11.2 million smartphones, which is slightly better than the industry's average. According to preliminary estimates for the company's financial announcements, Lenovo's global mobile phone market share has declined 1.5% to 3.2% year on year.

Lenovo smartphone sales in the Asia Pacific and Eastern Europe respectively rose by 5% and 19% year on year. Based on these numbers, its sales in China and the Americas obviously dropped. The two regions are the major source of Lenovo Group's income, and the Americas contribute 30% while China contributes 28%.

Lenovo said that the decline of sales in China was related to its transformation strategy, which is reducing the low-price products and turning to higher-price products gradually.