Company name	Lenovo Group Limited
Company type	Public
Traded as
Company logo
Company slogan	New World. New Thinking
Foundation	1984
Founder	Liu Chuanzhi
Location	Morrisville, NC, U.S.Beijing, ChinaSingapore
Area served	Worldwide
Key people	Yang Yuanqing (Chairman and CEO)
Revenue	US$ 21.594 billion (2011)
Net income	US$ 273 million (2011)
Operating income	US$ 382 million (2011)
Assets	US$ 10.705 billion (2011)
Equity	US$ 1.834 billion (2011)
Num employees	26,341 (2011)
Industry	Computer hardwareComputer systemElectronics
Products	Desktops, servers, notebooks, tablet computers, netbooks, peripherals, printers, televisions,
Homepage	}}

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 located in Morrisville, North Carolina, Beijing, China and Singapore.

Global Headquarters : The United States Raleigh ( North Carolina Research Triangle Park )

The main R & D centers: Beijing, China, Japan, Shanghai, Shenzhen and the United States, North Carolina, Raleigh

Production base and assembly facilities: Beijing, Shanghai, Huiyang and Shenzhen; India's Pontiac Lee (Pondicherry,); Monterrey, Mexico (Monterrey,); the United States Greensboro (in Greensboro); and in the global contract manufacturing and OEM

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.

Early history[link]

Founding and early years[link]

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 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 took the lead in China's computer market late 1996 and has held it ever since. Legend has been able to accomplish this by underpricing foreign competitors while providing quality and support unavailable from local competitors.

Leadership[link]

Liu Chuanzhi[link]

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 company was incorporated in 1988 in Hong Kong.

Yang Yuanqing[link]

Yang Yuanqing is the 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.

Gianfranco Lanci[link]

In April of 2012 Lenovo named former Acer CEO Gianfranco Lanci head of its European unit. Lenovo said the hiring of Lanci was designed to help achieve its goal of becoming a top three PC maker in Europe within the year.

Products[link]

ThinkPad[link]

The ThinkPad line of laptop computers was originally sold by IBM and are known for their boxy black design, which was 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. 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.

IdeaPad[link]

The IdeaPad line of consumer-oriented laptop computers was released in January 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 ThinkPad laptops, towards a more consumer-focused 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[link]

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[link]

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. 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[link]

The LePad is a tablet computer sold by Lenovo in China. The LePad is part of an 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.

U300s Ultrabook[link]

In 2012, Lenovo has introduced an Ultrabook computer, the U300s. This model features the Intel Core i7 processor as well as 256Gb Solid State Drive.

LePhone[link]

Lenovo launched the LePhone in order to compete against other smart phones. The LePhone is offered at a low price point, 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. As of December 2011 the LePhone exclusively uses the Android operating system from Google but Lenovo has plans to release a version of the LePhone that makes use of Microsoft Windows in 2012.

LeTV[link]

In November 2011 Lenovo said it would soon unveil a smart television product called LeTV, expected for release in the first quarter of 2012. "The PC, communications and TV industries are currently undergoing a 'smart' transformation. In the future, users will have many smart devices and will desire an integrated experience of hardware, software and cloud services." Liu Jun, president of Lenovo's mobile-Internet and digital-home-business division.

Cloud[link]

In November 2011 Lenovo said it will offer a new cloud computing service that will allow users to share content between multiple devices in addition to managing their personal information and social networking.

Other products[link]

Lenovo makes products for world wide sale. These products include:

ThinkStation workstations

ThinkServer servers

Lenovo 3000 J Series desktops

Lenovo 3000 C, N, and V Series laptops

Computer displays

ThinkVision projectors and monitors

Financials and market share[link]

Lenovo is a global Fortune 500 company with a 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 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 venture 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.

Lenovo reported a 54-percent rise in profit for the third quarter of 2011, beating analyst predictions, in spite of slowing growth in sales and a shortage of hard drives.

The YOY financial growth of Lenovo is:

2005/2006 fiscal year sales revenue: $ 13.28 billion

2006/2007 fiscal year sales revenue: $ 13.98 billion

2007/2008 fiscal year sales revenue: $ 16.35 billion

2008/2009 fiscal year sales revenue: $ 14.9 billion

2009/2010 fiscal year sales revenue: $ 16.6 billion

2010/2011 fiscal year sales revenue: $ 21.6 billion

Lenovo Group's international competitors include Hewlett-Packard (HP), Dell Computer (DELL), Acer (acer), Toshiba (Toshiba) and Asustek (ASUS), Sony (SONY) etc. and the main domestic competitors include Founder , Haier , TCL , Shenzhou Computer , Tsinghua Tong Fang and so on.

Ownership[link]

In the 1980s, with market reforms in progress, the Chinese government commissioned Liu Chuanzhi to distribute foreign-made computers. Soon after 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. Their first significant transaction, an attempt to import televisions, failed. The group rebuilt itself within a year of hard work conducting quality checks on computers for new buyers. Lenovo soon invested money in developing a circuit board that would allow IBM PCs to process Chinese characters. This product was Lenovo's first major success. In 1990 Lenovo started to assemble PCs under its original brand name, Legend.

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 Sciences 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 mandates 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 Sciences 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."

Joint ventures, mergers and acquisitions[link]

IBM[link]

Lenovo made its acquisition of IBM's personal computer business 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 Mobile[link]

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 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. 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[link]

On January 27, 2011, Lenovo formed a PC joint venture with Japanese PC maker NEC. 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[link]

Lenovo announced in June 2011 that it planned to take control of Medion, 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.

Marketing[link]

Olympic sponsorship[link]

To that end, Lenovo signed as the official computer sponsor of the 2006 Winter Olympics in Turin, Italy, and the 2008 Summer Olympics in Beijing.

Brand awareness[link]

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.

Space contest[link]

As of December 2011, Lenovo is conducting a contest in conjunction with YouTube, NASA, the European Space Agency, and JAXA that will allow students between the ages of 14 and 18 the chance to devise experiments to be performed by astronauts on the International Space Station. Winners will receive a trip of their choice to either Japan or Russia in addition to having their experiments performed in space.

Initial public offering[link]

Lenovo financed its formation by listing on the Hong Kong 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[link]

In 2004, Lenovo Group 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.

Supercomputer[link]

In August 2002, Lenovo launched a supercomputer capable of making a quadrillion calculations per second. This was the first computer to exceed quadrillion calculations per second in tests.

Headquarters and facilities[link]

Lenovo's principal facilities are in Beijing, 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.

Manufacturing[link]

Lenovo operates factories in Chengdu and Hefei in China, Japan, and as of December 2011 has plans to start production in Argentina. Lenovo focuses on vertical integration in order to avoid excessive reliance on original equipment manufacturers and keep costs down.

See also[link]

Lists of Chinese companies

List of the world's largest companies

List of computer system manufacturers

List of company name etymologies

References[link]

External links [link]

of Lenovo

Yahoo! - Lenovo Group Limited Company Yahoo Profile

Category:Companies based in Beijing Category:Computer hardware companies Category:Mobile phone manufacturers Category:Electronics companies of the People's Republic of China Category:Former Hang Seng Index Constituent Stocks Category:Warrants issued in Hong Kong Stock Exchange Category:Worldwide Olympic sponsors Category:Privately held companies of the People's Republic of China Category:Videotelephony Category:Supercomputing in China Category:Netbook manufacturers Category:Chinese brands Category:Texas Pacific Group companies Category:Computer companies established in 1988 Category:Companies established in 1988 Category:Multinational companies Category:Zhongguancun

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