Lenovo Group
Encyclopedia
Lenovo Group Limited is a Chinese multinational
personal technology company that develops, manufactures and markets desktop
and notebook computers, workstations, servers
, storage drives, IT
management software, and other related products and services. Lenovo was incorporated in Hong Kong in 1988 under its previous name, Legend. Lenovo's principal operations are currently located in Morrisville, North Carolina, Beijing, China and Singapore.
Lenovo is the world's second largest PC maker and markets the ThinkPad
line of notebook PCs and ThinkCentre
line of desktops. These brands became part of Lenovo's offerings after its 2005 acquisition of IBM
's personal computer business. Lenovo also sells the IdeaPad
line of notebook computers. Lenovo markets its products directly to consumers, small to medium size businesses, and large enterprises, as well as through online sales, company-owned stores, chain retailers, and major technology distributors and vendors.
and are known for their boxy black design, which was originally modeled after a traditional Japanese lunchbox
. Since early 2005, ThinkPads have been sold by Lenovo, which purchased the IBM personal computer
division in the same year. Known for their reliability, quality, durability, and performance, ThinkPads are popular with businesses, schools, and individual users. The ThinkPad has also been used in space, and is the only laptop certified for use on the International Space Station
.
laptops, towards a more consumer-focuses look and feel. Among these changes were the inclusion of a glossy screen and the omission of the traditional ThinkPad TrackPoint. Notebook Review said the keyboard had a ‘"distinctive ThinkPad feel" and "the touchpad and touchpad buttons were smooth and responsive."
desktop
, the IdeaCentre K210, was announced by Lenovo on June 30, 2008. While IdeaCentre was designed to be purely desktop models, influences of the IdeaPad
line were observed. One such feature was Veriface facial recognition technology.
At CES 2011, Lenovo announced the launch of four IdeaCentre desktops: the A320, B520, B320, and C205. All desktops were designed as All-in-ones, combining processor and monitor into a single unit. The desktops were described by HotHardware as being ‘uniquely designed’, with users needing to ‘gaze on each one to see which design would look best in your place’.
As of May 2011 Lenovo planned to introduce two tablet devices during the summer of that year in the United States. The tablet intended for the consumer market would be marketed under the Idea brand while the tablet intended for the business market would be marketed under the ThinkPad brand. Lenovo has stated that the LePad branding used in China would not be used to sell tablets in the United States.
in order to compete against Apple's iPhone and other smart phones. The LePhone is offered at a relatively low price point, about half the cost of an iPhone, and is customized for the Chinese market. The LePhone has benefited from strong support from Chinese mobile phone companies and content providers such as Baidu
, Alibaba, and Tencent. The LePhone supports the GSM standard, China's indigenous TD-SCDMA
3G
standard used by China Mobile
, the WCDMA 3G standard used by China Unicom
, and China Telecom
's CDMA 2000 network.
company with a special focus on personal computers with annual sales of over $21 billion. Lenovo is the dominant supplier of computers in mainland China and the second largest computer maker by volume in the world. After years of expansion and numerous acquisitions Lenovo became the world's second largest supplier of personal computers in the world during the third quarter of 2011.
Thanks to rapid sales growth in all markets, Lenovo commanded around 13.5% of the worldwide computer market as of October 2011. The company's expansion was boosted in part by the joint vendor with NEC
in Japan
and aggressive marketing to both the professional and consumer. Yang Yuanqing
said that Lenovo would continue its expansion by focusing on technological convergence in the areas of smart phones, tablets, personal computers, and "smart TV." "We must deliver a great user experience across all platforms to achieve our goal and become the leading personal technology company in the world," he stated.
In the second quarter of 2011, Lenovo was the third largest vendor
of personal computers in the world. For the year ending with third quarter 2010, its market share increased from 8.6 percent to 10.4 percent. The company is the largest seller of PCs in China, with a 28.6% share of the China market, according to research firm IDC in July, 2009. It reported annual sales of $14.9 billion for the fiscal year ending 2008/2009 (ending March 31, 2009).
During the first quarter of 2011 Lenovo controlled 31.7% of the Chinese personal computer market when measured by units sold. Lenovo reported a 98.3 percent rise in profit to $108.8 million during the first quarter of 2011, up from $54.86 million during the same quarter of the previous year. Lenovo shipped 10.28 million personal computers in the first quarter of 2011.
In May 2011, Lenovo reported fourth-quarter earnings of $42 million on sales of $4.88 billion. Wall Street
was expecting revenue of $5.08 billion, according to Thomson Reuters.
owns 36% of Legend Holdings.
On September 4, 2009, Oceanwide Holdings Group, a private investment firm based in Beijing, bought 29% of Legend Holdings, the parent company of Lenovo, for 2.76 billion yuan.
IBM acquired a 18.9% share of Lenovo in 2005 as part of Lenovo's purchase of IBM's personal computing division. Since then IBM has steadily reduced its holdings of Lenovo stock. In July 2008 the IBM's interest in Lenovo fell below the 5% threshold that mandating public disclosure.
In November 2010, it was reported that private equity firms TPG Capital and General Atlantic
were seeking to exit Lenovo with a HK$1.56 billion share placement.
Responding to claims that Lenovo is a state owned enterprise CEO Yang Yuanqing said: "Our company is a 100% market-oriented company. Some people have said we are a state-owned enterprise. It's 100% not true. In 1984 the Chinese Academy of Sci-ences only invested $25,000 in our company. The purpose of the Chinese Academy of Sciences to invest in this company was that they wanted to commercialize their research results. The Chinese Academy of Sciences is a pure research entity in China, owned by the government. From this point, you could say we're different from state-owned enterprises. Secondly, after this investment, this company is run totally by the founders and management team. The government has never been involved in our daily operation, in important decisions, strategic direction, nomination of the CEO and top executives and financial management. Everything is done by our management team."
Yang dramatically increased his ownership stake in by acquiring 797 million shares in 2011. As of June 2011, Yang owns an 8 percent stake in Lenovo. He previously owned only 70 million shares. In a statement, Yang said, "While the transaction is a personal financial matter, I want to be very clear that my decision to make this investment is based on my strong belief in the company's very bright future. Our culture is built on commitment and ownership - we do what we say, and we own what we do. My decision to increase my holdings represents my steadfast belief in these principles."
Lenovo made its acquisition of IBM
amid a backlash in congress
against Chinese companies trying to purchase American businesses. Chinese oil company CNOOC abandoned its attempt to buy Unocal and appliance maker Haier
Group ended its efforts to acquire Maytag
. Lenovo has moved its global headquarters to Purchase, New York and kept most of its former IBM development staff in North Carolina
.
Lenovo invested 100 million yuan in a fund dedicated to providing seed funding for mobile application development for its LeGarden online app store
. As of 2010, LeGarden had more than 1,000 programs available for download to users of the LePhone. At the same time, LeGarden counted 2,774 individual developers and 542 developer companies as members.
. As part of the deal, the companies said in a statement they will establish a new company called Lenovo NEC Holdings B.V., which will be registered in the Netherlands. NEC will receive US$175 million from Lenovo through the issuance of Lenovo's shares. Lenovo, through a unit, will own a 51% stake in the joint venture, while NEC will hold a 49% stake. Lenovo has a five-year option to expand its stake in the joint venture.
This joint venture with NEC is intended to boost Lenovo's worldwide sales by expanding its presence in Japan, a key market for personal computers. NEC is spinning off its personal computer business to the joint venture. As of 2010, NEC controlled about 20% of Japan's market for personal computers while Lenovo had a 5% share. Lenovo and NEC have also agreed to explore cooperating in other area such as servers and tablet computers.
, a German electronics-maker. Lenovo said the acquisition would double its share of the German computer market, making it the third-largest company by sales after Acer
and Hewlett-Packard
. The deal, expected to close in the third quarter of the same year, would be the first time a Chinese company has bought a well-known German company. This acquisition will give Lenovo 14 percent of the German computer market. Gerd Brachmann, chairman of Medion, agreed to sell two-thirds of his 60 percent stake in the company. He will be paid in cash for 80 percent of the shares he and receive 20 percent in Lenovo stock. That would give him about 1 percent of Lenovo.
was incorporated in 1988 in Hong Kong
.
in Turin
, Italy
, and the 2008 Summer Olympics
in Beijing
.
When Legend launched its own branded personal computer in 1990, it already had a strong distribution network in place. With that distribution network and prices 30% below those of foreign companies such as Hewlett Packard, Legend grabbed the lead in China's computer market late 1996 and has held it ever since. Legend has been able to accomplish this buy underpricing foreign competitors while providing quality and support unavailable from local competitors.
stock market in 1994, raising nearly $30 million. Lenovo was traded in overseas financial markets for the first time.On 1 April 2001, Lenovo reorganized its assets and relisted on the Hong Kong stock market.
changed its English name to Lenovo Group Limited. "Lenovo" is a portmanteau of "Le-" (from Legend) and "novo", Latin
ablative for "new". The Chinese name means "association" or "connected thinking" but can also imply creativity
. The name was changed from Legend because it conflicted with other trademarks registered in the West.
capable of making a quadrillion calculations per second. This was the first high-performance computer which speed has exceeded quadrillion calculations per second in actual tests.
, Morrisville, North Carolina
and Singapore
, with research centers in those locations, as well as Shanghai, Shenzhen
, Xiamen
, and Chengdu
in China, and Yamato in Kanagawa Prefecture
, Japan.
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
personal technology company that develops, manufactures and markets desktop
Desktop computer
A desktop computer is a personal computer in a form intended for regular use at a single location, as opposed to a mobile laptop or portable computer. Early desktop computers are designed to lay flat on the desk, while modern towers stand upright...
and notebook computers, workstations, servers
Server (computing)
In the context of client-server architecture, a server is a computer program running to serve the requests of other programs, the "clients". Thus, the "server" performs some computational task on behalf of "clients"...
, storage drives, IT
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
management software, and other related products and services. Lenovo was incorporated in Hong Kong in 1988 under its previous name, Legend. Lenovo's principal operations are currently located in Morrisville, North Carolina, Beijing, China and Singapore.
Lenovo is the world's second largest PC maker and markets the ThinkPad
ThinkPad
ThinkPad is line of laptop computers originally sold by IBM but now produced by Lenovo. They are known for their boxy black design, which was modeled after a traditional Japanese lunchbox...
line of notebook PCs and ThinkCentre
ThinkCentre
The ThinkCentre line of desktops was introduced in 2003 by IBM’s Personal Computing Division . Following Lenovo's purchase of IBM PCD, Lenovo has continued to develop the ThinkCentre line of desktop products.-2003:...
line of desktops. These brands became part of Lenovo's offerings after its 2005 acquisition of IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
's personal computer business. Lenovo also sells the IdeaPad
IdeaPad
-History:The IdeaPad laptops were announced in January 2008. The first three models in the product line were the Y710, the Y510, and the U110. Some of the features that defined these first three models were widescreens, VeriFace facial recognition, frameless screens, touch controls, and Dolby...
line of notebook computers. Lenovo markets its products directly to consumers, small to medium size businesses, and large enterprises, as well as through online sales, company-owned stores, chain retailers, and major technology distributors and vendors.
ThinkPad
The ThinkPad line of laptop computers was originally sold by IBMIBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
and are known for their boxy black design, which was originally modeled after a traditional Japanese lunchbox
Bento
is a single-portion takeout or home-packed meal common in Japanese cuisine. A traditional bento consists of rice, fish or meat, and one or more pickled or cooked vegetables, usually in a box-shaped container. Containers range from disposable mass produced to hand crafted lacquerware...
. Since early 2005, ThinkPads have been sold by Lenovo, which purchased the IBM personal computer
Personal computer
A personal computer is any general-purpose computer whose size, capabilities, and original sales price make it useful for individuals, and which is intended to be operated directly by an end-user with no intervening computer operator...
division in the same year. Known for their reliability, quality, durability, and performance, ThinkPads are popular with businesses, schools, and individual users. The ThinkPad has also been used in space, and is the only laptop certified for use on the International Space Station
International Space Station
The International Space Station is a habitable, artificial satellite in low Earth orbit. The ISS follows the Salyut, Almaz, Cosmos, Skylab, and Mir space stations, as the 11th space station launched, not including the Genesis I and II prototypes...
.
IdeaPad
The IdeaPad line of consumer-oriented laptop computers was released in January of 2008. The IdeaPad is entirely the result of Lenovo's own research and development. Unlike the ThinkPad line of notebooks its design and brand were not inherited from IBM. The IdeaPad design marked a deviation from the business-oriented ThinkPadThinkPad
ThinkPad is line of laptop computers originally sold by IBM but now produced by Lenovo. They are known for their boxy black design, which was modeled after a traditional Japanese lunchbox...
laptops, towards a more consumer-focuses look and feel. Among these changes were the inclusion of a glossy screen and the omission of the traditional ThinkPad TrackPoint. Notebook Review said the keyboard had a ‘"distinctive ThinkPad feel" and "the touchpad and touchpad buttons were smooth and responsive."
ThinkCentre
The ThinkCentre line of desktops was introduced in 2003 by IBM and this product line has been sold by Lenovo since 2005. Following Lenovo's purchase of IBM PCD, Lenovo has continued to develop the ThinkCentre line of desktop products.IdeaCentre
The first IdeaCentreIdeaCentre
The first IdeaCentre desktop, the IdeaCentre K210, was announced by Lenovo on June 30, 2008. While IdeaCentre was designed to be purely desktop models, influences of the IdeaPad line were observed...
desktop
Desktop
Desktop refers to the surface of a desk.The term has been adopted as an adjective to distinguish office appliances which can be fitted on top of a desk, from larger equipment covering its own area on the floor....
, the IdeaCentre K210, was announced by Lenovo on June 30, 2008. While IdeaCentre was designed to be purely desktop models, influences of the IdeaPad
IdeaPad
-History:The IdeaPad laptops were announced in January 2008. The first three models in the product line were the Y710, the Y510, and the U110. Some of the features that defined these first three models were widescreens, VeriFace facial recognition, frameless screens, touch controls, and Dolby...
line were observed. One such feature was Veriface facial recognition technology.
At CES 2011, Lenovo announced the launch of four IdeaCentre desktops: the A320, B520, B320, and C205. All desktops were designed as All-in-ones, combining processor and monitor into a single unit. The desktops were described by HotHardware as being ‘uniquely designed’, with users needing to ‘gaze on each one to see which design would look best in your place’.
LePad
The LePad is a tablet computer sold by Lenovo in China. The LePad is part of an aggressive effort by Lenovo in the market for mobile internet devices. Lenovo has established a Mobile Internet and Digital Home Business Group in order to compete in this space. "The LePad is the first major launch since the business group's founding, we are confident in it and will continue to enrich its product line with better per-forming products and a richer selection of styles," Lenovo said in a written statement.As of May 2011 Lenovo planned to introduce two tablet devices during the summer of that year in the United States. The tablet intended for the consumer market would be marketed under the Idea brand while the tablet intended for the business market would be marketed under the ThinkPad brand. Lenovo has stated that the LePad branding used in China would not be used to sell tablets in the United States.
LePhone
Lenovo launched the LePhoneLePhone
-Launch:Lenovo launched the LePhone in order to compete against Apple's iPhone and other smart phones. The LePhone is offered at a relatively low price point, about half the cost of an iPhone, and is customized for the Chinese market...
in order to compete against Apple's iPhone and other smart phones. The LePhone is offered at a relatively low price point, about half the cost of an iPhone, and is customized for the Chinese market. The LePhone has benefited from strong support from Chinese mobile phone companies and content providers such as Baidu
Baidu
Baidu, Inc. , simply known as Baidu and incorporated on January 18, 2000, is a Chinese web services company headquartered in the Baidu Campus in Haidian District, Beijing, People's Republic of China....
, Alibaba, and Tencent. The LePhone supports the GSM standard, China's indigenous TD-SCDMA
TD-SCDMA
Time Division Synchronous Code Division Multiple Access or UTRA/UMTS-TDD 1.28 Mcps Low Chip Rate , is an air interface found in UMTS mobile telecommunications networks in China as an alternative to W-CDMA. Together with TD-CDMA, it is also known as UMTS-TDD or IMT 2000 Time-Division .The term...
3G
3G
3G or 3rd generation mobile telecommunications is a generation of standards for mobile phones and mobile telecommunication services fulfilling the International Mobile Telecommunications-2000 specifications by the International Telecommunication Union...
standard used by China Mobile
China Mobile
China Mobile Limited is a Chinese state-owned telecommunication company that provides mobile voice and multimedia services through its nationwide mobile telecommunications network, the largest of its kind in the world...
, the WCDMA 3G standard used by China Unicom
China Unicom
China Unicom or China United Netcom Ltd , is a Chinese state-owned telecommunications operator in the People's Republic of China.-History:...
, and China Telecom
China Telecom
China Telecom Corp. Ltd. is a Chinese state-owned telecommunication company. It is the largest fixed line service and 3rd largest mobile telecommunication provider in the People's Republic of China.-Sectors:...
's CDMA 2000 network.
Other products
Lenovo makes a variety of products for world wide sale. These products include:- ThinkStation workstations
- ThinkServer serversServer (computing)In the context of client-server architecture, a server is a computer program running to serve the requests of other programs, the "clients". Thus, the "server" performs some computational task on behalf of "clients"...
- Lenovo 3000Lenovo 3000Lenovo 3000 was a line of low-priced notebook and desktop computers designed by Lenovo Group targeting small businesses and individuals. It was replaced with the IdeaCentre and IdeaPad brands.-Background:...
J Series desktops - Lenovo 3000Lenovo 3000Lenovo 3000 was a line of low-priced notebook and desktop computers designed by Lenovo Group targeting small businesses and individuals. It was replaced with the IdeaCentre and IdeaPad brands.-Background:...
C, N, and V Series laptops - Computer displays
- ThinkVision projectorsVideo projectorA video projector is an image projector that receives a video signal and projects the corresponding image on a projection screen using a lens system. All video projectors use a very bright light to project the image, and most modern ones can correct any curves, blurriness, and other...
and monitorVideo monitorA video monitor also called a broadcast monitor, broadcast reference monitor or just reference monitor, is a display device similar to a television set, used to monitor the output of a video-generating device, such as playout from a video server, IRD, video camera, VCR, or DVD player. It may or...
s
Financials and market share
Lenovo is a global Fortune 500Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
company with a special focus on personal computers with annual sales of over $21 billion. Lenovo is the dominant supplier of computers in mainland China and the second largest computer maker by volume in the world. After years of expansion and numerous acquisitions Lenovo became the world's second largest supplier of personal computers in the world during the third quarter of 2011.
Thanks to rapid sales growth in all markets, Lenovo commanded around 13.5% of the worldwide computer market as of October 2011. The company's expansion was boosted in part by the joint vendor with NEC
NEC
, a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....
in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
and aggressive marketing to both the professional and consumer. Yang Yuanqing
Yang Yuanqing
Yang Yuanqing is the current chief executive officer of Lenovo.-Lenovo:In 1989, Yang joined Legend, as Lenovo was then known, as a salesman. Since then, Yang has moved up the ranks quickly. A mere 12 years later, at the age of 37, he moved to the top as president and CEO. Yang Yuanqing was...
said that Lenovo would continue its expansion by focusing on technological convergence in the areas of smart phones, tablets, personal computers, and "smart TV." "We must deliver a great user experience across all platforms to achieve our goal and become the leading personal technology company in the world," he stated.
In the second quarter of 2011, Lenovo was the third largest vendor
Market share of leading PC vendors
Because the personal computer is an iconic high tech product the market share of leading PC vendors is watched closely. Market discussion of these devices may include netbooks but do not include media tablets which was dominated by Apple products....
of personal computers in the world. For the year ending with third quarter 2010, its market share increased from 8.6 percent to 10.4 percent. The company is the largest seller of PCs in China, with a 28.6% share of the China market, according to research firm IDC in July, 2009. It reported annual sales of $14.9 billion for the fiscal year ending 2008/2009 (ending March 31, 2009).
During the first quarter of 2011 Lenovo controlled 31.7% of the Chinese personal computer market when measured by units sold. Lenovo reported a 98.3 percent rise in profit to $108.8 million during the first quarter of 2011, up from $54.86 million during the same quarter of the previous year. Lenovo shipped 10.28 million personal computers in the first quarter of 2011.
In May 2011, Lenovo reported fourth-quarter earnings of $42 million on sales of $4.88 billion. Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
was expecting revenue of $5.08 billion, according to Thomson Reuters.
Ownership
As of October 1, 2011, 58% of Lenovo stock was held by the general public, 34% by Legend Holdings Limited, and 8% by other entities. The Chinese Academy of SciencesChinese Academy of Sciences
The Chinese Academy of Sciences , formerly known as Academia Sinica, is the national academy for the natural sciences of the People's Republic of China. It is an institution of the State Council of China. It is headquartered in Beijing, with institutes all over the People's Republic of China...
owns 36% of Legend Holdings.
On September 4, 2009, Oceanwide Holdings Group, a private investment firm based in Beijing, bought 29% of Legend Holdings, the parent company of Lenovo, for 2.76 billion yuan.
IBM acquired a 18.9% share of Lenovo in 2005 as part of Lenovo's purchase of IBM's personal computing division. Since then IBM has steadily reduced its holdings of Lenovo stock. In July 2008 the IBM's interest in Lenovo fell below the 5% threshold that mandating public disclosure.
In November 2010, it was reported that private equity firms TPG Capital and General Atlantic
General Atlantic
General Atlantic is a private equity investment firm. The firm invests through growth capital injections, control buyouts, industry consolidations, build-ups, recapitalizations, and PIPEs...
were seeking to exit Lenovo with a HK$1.56 billion share placement.
Responding to claims that Lenovo is a state owned enterprise CEO Yang Yuanqing said: "Our company is a 100% market-oriented company. Some people have said we are a state-owned enterprise. It's 100% not true. In 1984 the Chinese Academy of Sci-ences only invested $25,000 in our company. The purpose of the Chinese Academy of Sciences to invest in this company was that they wanted to commercialize their research results. The Chinese Academy of Sciences is a pure research entity in China, owned by the government. From this point, you could say we're different from state-owned enterprises. Secondly, after this investment, this company is run totally by the founders and management team. The government has never been involved in our daily operation, in important decisions, strategic direction, nomination of the CEO and top executives and financial management. Everything is done by our management team."
Yang dramatically increased his ownership stake in by acquiring 797 million shares in 2011. As of June 2011, Yang owns an 8 percent stake in Lenovo. He previously owned only 70 million shares. In a statement, Yang said, "While the transaction is a personal financial matter, I want to be very clear that my decision to make this investment is based on my strong belief in the company's very bright future. Our culture is built on commitment and ownership - we do what we say, and we own what we do. My decision to increase my holdings represents my steadfast belief in these principles."
IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
amid a backlash in congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
against Chinese companies trying to purchase American businesses. Chinese oil company CNOOC abandoned its attempt to buy Unocal and appliance maker Haier
Haier
Haier Group is a multinational consumer electronics and home appliances company headquartered in Qingdao, Shandong, People's Republic of China. Its products include air conditioners, mobile phones, computers, microwave ovens, washing machines, refrigerators, and televisions...
Group ended its efforts to acquire Maytag
Maytag
Maytag Corporation is an American home and commercial appliance company, headquartered in Newton, Iowa, that is a division of the Whirlpool Corporation.-Company history:...
. Lenovo has moved its global headquarters to Purchase, New York and kept most of its former IBM development staff in North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
.
Lenovo Mobile
Lenovo sold its mobile phone division in 2008 in order to focus on its personal computer business and then paid $200 million to buy it back in November of 2009. Lenovo re-acquired its mobile division in order to focus on mobile internet devices such as smart phones and tablet computers Lenovo Mobile now ranks third in terms of unit share in China’s mobile handset market.Lenovo invested 100 million yuan in a fund dedicated to providing seed funding for mobile application development for its LeGarden online app store
App Store
The App Store is a digital application distribution platform for iOS developed and maintained by Apple Inc.The service allows users to browse and download applications from the iTunes Store that were developed with the iOS SDK or Mac SDK and published through Apple Inc.. Depending on the...
. As of 2010, LeGarden had more than 1,000 programs available for download to users of the LePhone. At the same time, LeGarden counted 2,774 individual developers and 542 developer companies as members.
NEC
On January 27, 2011, Lenovo formed a PC joint venture with Japanese PC maker NECNEC
, a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....
. As part of the deal, the companies said in a statement they will establish a new company called Lenovo NEC Holdings B.V., which will be registered in the Netherlands. NEC will receive US$175 million from Lenovo through the issuance of Lenovo's shares. Lenovo, through a unit, will own a 51% stake in the joint venture, while NEC will hold a 49% stake. Lenovo has a five-year option to expand its stake in the joint venture.
This joint venture with NEC is intended to boost Lenovo's worldwide sales by expanding its presence in Japan, a key market for personal computers. NEC is spinning off its personal computer business to the joint venture. As of 2010, NEC controlled about 20% of Japan's market for personal computers while Lenovo had a 5% share. Lenovo and NEC have also agreed to explore cooperating in other area such as servers and tablet computers.
Medion
Lenovo announced in June of 2011 that it planned to take control of MedionMedion
Medion AG is a German consumer electronics company. It operates in Europe, the United States, and the Asia-Pacific region. The main products are computers and notebooks, but also TVs, refrigerators, toasters, and fitness equipment. The company is becoming popular in Europe but has had mixed success...
, a German electronics-maker. Lenovo said the acquisition would double its share of the German computer market, making it the third-largest company by sales after Acer
Acer
Acer may refer to:* Acer , the genus of trees and shrubs commonly known as Maple, from the Latin word ācer meaning sharp* Acer Inc., a Taiwan-based international computer company...
and Hewlett-Packard
Hewlett-Packard
Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, USA that provides products, technologies, softwares, solutions and services to consumers, small- and medium-sized businesses and large enterprises, including...
. The deal, expected to close in the third quarter of the same year, would be the first time a Chinese company has bought a well-known German company. This acquisition will give Lenovo 14 percent of the German computer market. Gerd Brachmann, chairman of Medion, agreed to sell two-thirds of his 60 percent stake in the company. He will be paid in cash for 80 percent of the shares he and receive 20 percent in Lenovo stock. That would give him about 1 percent of Lenovo.
Liu Chuanzhi
Liu Chuanzhi is the founder of Lenovo and remains the paramount leader of the firm. Liu founded Lenovo (whose English name was originally Legend, in Chinese 联想 Lianxiang), in 1984 with a group of ten other engineers in Beijing with 200,000 yuan. The listed holding companyHolding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
was incorporated in 1988 in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
.
Yang Yuanqing
Yang Yuanqing is the current chief executive officer of Lenovo. Yang was a chairman of Lenovo's board from 2004 to 2008. Before the acquisition of IBM's PC division by Lenovo in 2004, he was the President and CEO of the company. One of his major achievements was making Lenovo the best-selling PC brand in China since 1997. In 2001, Business Week named him as one of the rising stars in Asia. In February 2009 the CEO Bill Amelio was replaced by Yang.Olympic sponsorship
To that end, Lenovo signed on as the official computer sponsor of the 2006 Winter Olympics2006 Winter Olympics
The 2006 Winter Olympics, officially known as the XX Olympic Winter Games, was a winter multi-sport event which was celebrated in Turin, Italy from February 10, 2006, through February 26, 2006. This marked the second time Italy hosted the Olympic Winter Games, the first being the VII Olympic Winter...
in Turin
Turin
Turin is a city and major business and cultural centre in northern Italy, capital of the Piedmont region, located mainly on the left bank of the Po River and surrounded by the Alpine arch. The population of the city proper is 909,193 while the population of the urban area is estimated by Eurostat...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, and the 2008 Summer Olympics
2008 Summer Olympics
The 2008 Summer Olympics, officially known as the Games of the XXIX Olympiad, was a major international multi-sport event that took place in Beijing, China, from August 8 to August 24, 2008. A total of 11,028 athletes from 204 National Olympic Committees competed in 28 sports and 302 events...
in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
.
Brand awareness
When asked about Lenovo's brand Yang Yuanqing said, "Outside of China we still have a long way to go, and that's why we've paid a lot of attention to brand building, particularly in emerging markets. It's easier to do it in those countries compared with mature markets. The Beijing Olympics were very good for brand awareness in countries like the US and Argentina, but not good enough. If I was the chief executive then I would have spent more money to build the brand outside China to leverage off the Olympics."Founding and early years
On November 1, 1984, Lenovo was established with 200,000 RMB by eleven people, named the "Chinese Academy of the Sciences Institute of Computing Technology," new technology development company. In 1985, the company launched the first Chinese-made motherboard with Lenovo technology. The current brand name, Lenovo, was born from this. On 23 June 1988, Lenovo was incoporated in Hong Kong. New technology development company and Chinese technology transfer company co-founded Lenovo of Hong Kong. Lenovo Group used Legend as its English name. The "Lenovo" name was used for the first time.When Legend launched its own branded personal computer in 1990, it already had a strong distribution network in place. With that distribution network and prices 30% below those of foreign companies such as Hewlett Packard, Legend grabbed the lead in China's computer market late 1996 and has held it ever since. Legend has been able to accomplish this buy underpricing foreign competitors while providing quality and support unavailable from local competitors.
Initial public offering
Lenovo financed its formation by listing on the Hong KongHong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
stock market in 1994, raising nearly $30 million. Lenovo was traded in overseas financial markets for the first time.On 1 April 2001, Lenovo reorganized its assets and relisted on the Hong Kong stock market.
Name change
In 2004, Lenovo GroupLenovo Group
Lenovo Group Limited is a Chinese multinational personal technology company that develops, manufactures and markets desktop and notebook computers, workstations, servers, storage drives, IT management software, and other related products and services. Lenovo was incorporated in Hong Kong in 1988...
changed its English name to Lenovo Group Limited. "Lenovo" is a portmanteau of "Le-" (from Legend) and "novo", Latin
Latin
Latin is an Italic language originally spoken in Latium and Ancient Rome. It, along with most European languages, is a descendant of the ancient Proto-Indo-European language. Although it is considered a dead language, a number of scholars and members of the Christian clergy speak it fluently, and...
ablative for "new". The Chinese name means "association" or "connected thinking" but can also imply creativity
Creativity
Creativity refers to the phenomenon whereby a person creates something new that has some kind of value. What counts as "new" may be in reference to the individual creator, or to the society or domain within which the novelty occurs...
. The name was changed from Legend because it conflicted with other trademarks registered in the West.
Supercomputer
In August 2002, Lenovo launched a supercomputerSupercomputer
A supercomputer is a computer at the frontline of current processing capacity, particularly speed of calculation.Supercomputers are used for highly calculation-intensive tasks such as problems including quantum physics, weather forecasting, climate research, molecular modeling A supercomputer is a...
capable of making a quadrillion calculations per second. This was the first high-performance computer which speed has exceeded quadrillion calculations per second in actual tests.
Headquarters and facilities
Lenovo's principal facilities are in BeijingBeijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
, Morrisville, North Carolina
Morrisville, North Carolina
Morrisville is a town in Wake County, North Carolina, United States. A small portion of the town extends into Durham County. The population was 18,576 according to a April 1, 2010 census. Morrisville is part of the Research Triangle metropolitan region...
and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, with research centers in those locations, as well as Shanghai, Shenzhen
Shenzhen
Shenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
, Xiamen
Xiamen
Xiamen , also known as Amoy , is a major city on the southeast coast of the People's Republic of China. It is administered as a sub-provincial city of Fujian province with an area of and population of 3.53 million...
, and Chengdu
Chengdu
Chengdu , formerly transliterated Chengtu, is the capital of Sichuan province in Southwest China. It holds sub-provincial administrative status...
in China, and Yamato in Kanagawa Prefecture
Yamato, Kanagawa
is a city located in central Kanagawa Prefecture, Japan. As of 2010, the city had an estimated population of 225,866 and a density of 8,320 persons per km². The total area was 27.06 km².-Surrounding municipalities:*Zama*Fujisawa*Ebina*Sagamihara*Ayase...
, Japan.
See also
- Lists of Chinese companies
- List of the world's largest companies
- List of computer system manufacturers
- List of company name etymologies