Lenovo

Lenovo Group Limited
联想集团有限公司

Company type	Public company (Red chip)
Industry	Computing
Founded	1984
Headquarters	Beijing, China Morrisville, North Carolina, United States Hong Kong (registered)
Key people	Liu Chuanzhi, Chairman Yang Yuanqing, CEO
Products	Personal computers, laptops, imaging, mobile phones
Revenue	$16.4 billion USD (2008)
Operating income	1,438,000,000 United States dollar (2020)
Net income	804,000,000 United States dollar (2020)
Number of employees	Approx.23,000 (2008)
Website	www.lenovo.com

Lenovo Group Limited (simplified Chinese: 联想集团有限公司; traditional Chinese: 聯想集團有限公司; pinyin: Liánxiǎng Jítuán Yǒuxiàn Gōngsī SEHK: 992, Template:OTCBB) is China's largest and the world's fourth largest personal computer manufacturer (the latter since its 2005 purchase of IBM's PC division), after Hewlett-Packard and Dell of the U.S. and Acer of Taiwan.

Lenovo produces desktops, laptops, servers, handheld computers, imaging equipment, and mobile phone handsets. Lenovo also provides information technology integration and support services, and its QDI unit offers contract manufacturing.

Its executive headquarters are located in Beijing, China and in Morrisville, North Carolina, USA. It is incorporated in Hong Kong.

Products

Lenovo makes a variety of products for world wide sale. These products include:

• Lenovo ThinkCentre desktops
• Lenovo ThinkPad laptops and tablets
• Lenovo ThinkStation workstations
• IdeaCentre desktops
• IdeaPad consumer-oriented laptops
• Lenovo 3000 J Series desktops
• Lenovo 3000 C, N and V Series laptops
• LCD and CRT monitors
• ThinkVision projectors and monitors

The original IBM sale agreement between Lenovo and IBM allows Lenovo to sell IBM-branded desktops and laptops until 2010.

Ownership

As of October 31, 2008, 50.4% of Lenovo is owned by public shareholders, 42.3% by Legend Holdings Limited, 6.6% by Texas Pacific Group (TPG Capital), General Atlantic LLC and Newbridge Capital and 0.7% by the directors. Because the Chinese Academy of Sciences, a Chinese government agency, owns 65% of Legend Holdings, effectively the Chinese government owns about 27% of Lenovo and is the largest shareholder.

IBM became the owner of 18.9% of Lenovo in 2005 as part of Lenovo's acquisition of the IBM personal computing division. Since then IBM has steadily lowered its shareholding in Lenovo. In July 2008 the IBM shareholding went below the 5% reporting disclosure threshold. In February 2009 the CEO Bill Amelio was replaced with Yang Yuanqing.

History

Lenovo was formed in 1984 as a spin-off of the Chinese Academy of Sciences new technology unit. The company initially began as a reseller, distributor and later CM for foreign brands, including IBM, entering the Chinese market. In 1990, Lenovo started to manufacture its own PCs and by 1997 became the market leader in China. In 2004, Lenovo made the strategic choice to expand abroad and bought IBM’s PC business for $1.25billion in order to facilitate this transition. The acquisition of IBM’s ThinkPad brand represented a shortcut to brand building for Lenovo and provided the firm with an unprecedented global presence and access to new technologies and designs.

1980
1981	IBM PCD introduces its first personal computer, the IBM PC
1984	IBM PCD introduces its first portable computer, the IBM Portable PC, weighing 30 pounds.
	With an initial capital outlay of only RMB200,000, (US$25,000) Lenovo’s founding chairman Liu Chuanzhi, together with 10 like-minded colleagues, launches the New Technology Developer Inc. (the predecessor of the Legend Group) funded by the Chinese Academy of Sciences.
1986	IBM PCD announces its first laptop computer, the PC Convertible, weighing 12 pounds.
1987	IBM PCD announces the Personal System/2 personal computer. Legend successfully rolls out the Legend Chinese-character card.
1988	Legend’s Chinese-character card receives the highest National Science-Technology Progress Award in China. Legend Hong Kong is established.
1989	IBM PCD announces the Personal System/2 personal computer.
1990
1990	The very first Legend PC is launched in the market. Legend changes its role from that of an agent for imported computer products into that of a producer and seller of its own branded computer products. Legend PCs are ratified and accepted by the China Torch Program.
1992	IBM PCD introduces ThinkPad, the industry’s first notebook with a 10.4 inch color Thin Film Transistor (TFT) display and a TrackPoint (red ball) pointing device.
	Legend pioneers the home PC concept and Legend 1 + 1 home PCs enter the Chinese marketplace.
1993	Legend enters the Pentium era, producing China’s first "586" PC. Legend establishes 1+1 retail network.
1994	IBM PCD introduces the industry’s first notebook with integrated CD-ROM, the ThinkPad 755CD.
	Legend is listed on the Hong Kong Stock Exchange. The Legend PC business division is formally established.
1995	IBM PCD introduces the “butterfly” keyboard.
	IBM PCD moves from Boca Raton, Florida, to Raleigh, North Carolina.
	Legend introduces the first Legend-brand server.
1996	Legend becomes the market share leader in China for the first time.
	Legend introduces the first Legend brand laptop.
1997	IBM PCD introduces the industry’s first notebook equipped with a DVD-ROM, the ThinkPad 770.
	Legend signs an Intellectual Property agreement with Microsoft, the most valuable deal ever made in China at the time.
	Legend launches the first multi-function laser printer.
1998	IBM PCD introduces the industry’s first ThinkLight, a small light that illuminates the keyboard in low-light work environments, such as onboard an airplane.
	The millionth Legend PC comes off the production line. Intel Chairman Andy Grove attends the ceremony, and takes the PC for Intel’s museum collection.
	Legend establishes the first Legend Shop.
1999	IBM PCD introduces the industry’s first mini-notebook, weighing under three pounds, with standard ports and a keyboard that is 95 percent of full-size.
	IBM PCD announces its exit from the retail business.
	IBM PCD introduces the industry’s first PC with an embedded security chip.
	Legend becomes the top PC vendor in the Asia-Pacific region and heads the Chinese national Top 100 Electronic nterprises ranking.
	Legend launches pioneering Internet PC, with its "one-touch-to-the-net" feature, which enables millions of hinese PC users to easily access the Internet.
2000
2000	IBM PCD ships its 10-millionth ThinkPad notebook PC.
	Legend becomes a constituent stock of the Hang Seng Index - HK.
	Legend ranked in top 10 of world's best managed PC venders.
2001	An IBM notebook with an embedded security chip becomes the industry’s first notebook to be certified by the Trusted Computing Platform Alliance, an industry body setting data security standards.
	Legend successfully spins off Digital China Co. Ltd., which is separately listed on the Hong Kong Stock Exchange.
	Legend appoints Yuanqing Yang President and CEO.
	Legend first introduces "digital home" concept and launches accessories-enabling PC.
2002	IBM PCD introduces ImageUltra and Rapid Restore, the first automatic data recovery technologies of their kind.
	IBM PCD announces desktop PC outsourcing pact with Sanmina-SCI.
	Legend launches its first technological innovation convention, “Legend World 2002,” which opens up Legend’s “Technology Era”. Legend introduces its visionary concept for the future of technological development and applications, its Collaborating Applications project, as well as its strategies for implementing Collaborating Applications.
	Legend’s supercomputer, the DeepComp 1800 makes its debut. It is China’s first computer with 1,000 GFLOP (floating point operations per second) and China’s fastest computer for civilian use, ranked 43rd in the Top 500 list of the world’s fastest computers.
2003	IBM PCD introduces the industry’s first notebook with an extended battery life of up to 11 hours.
	IBM PCD introduces its ThinkCentre desktop PC line.
	IBM PCD introduces its Active Protection System, the industry’s first notebook with an airbag for hard drive and data protection in case the system is dropped.
	IBM PCD ships its 20-millionth ThinkPad notebook PC.
	IBM PCD introduces its ThinkCentre desktop PC line.
	Legend announces the birth of its new "Lenovo" logo to prepare for its expansion into the overseas market.
	Based on the collaborative application technology, Lenovo initiates IGRS Working Group, in cooperation with a few large companies and the Chinese Ministry of the Information Industry, to promote the formation of the industrial standard.
	Lenovo launches a Tech RoadShow 2003 nationwide to promote Lenovo's innovation.
	Lenovo successfully develops DeepComp 6800 in November 2003. It ranks 14th on the global list.
2004	IBM PCD introduces the ThinkCentre ultra small desktop PC, no larger than a box of corn flakes.
	IBM PCD introduces the first notebook with an integrated fingerprint reader.
	IBM PCD ships its 100-millionth PC (counting both desktop and notebook computers).
	Lenovo becomes an Olympic worldwide partner. It is the first Chinese company to become a computer technology equipment partner of the IOC.
	Lenovo decides to develop the rural market by launching the "Yuanmeng" PC series designed for township home users.
	Lenovo and IBM announce an agreement by which Lenovo will acquire IBM’s Personal Computing Division, its global PC (desktop and notebook computer) business. The acquisition forms a top-tier (third-largest) global PC leader.
2005	Lenovo completes the acquisition of IBM's Personal Computing Division, making it a new international IT competitor and the third-largest personal computer company in the world.
	Lenovo announces the closing of a US$350 million strategic investment by three leading private equity firms: Texas Pacific Group, General Atlantic LLC and Newbridge Capital LLC.
	Lenovo establishes a new Innovation Center in Research Triangle Park, N.C., to enable customers, business partners, solution providers and independent software vendors to collaborate on new personal computing solutions.
	Lenovo introduces the industry's thinnest, lightest and most secure Tablet PC, the ThinkPad X41 Tablet.
	Lenovo introduces the first widescreen ThinkPad with embedded wireless WAN, the ThinkPad Z60, available for the first time with a titanium cover.
	Lenovo becomes the world's largest provider of biometric-enabled PCs by selling its one-millionth PC with an integrated fingerprint reader.
	William J. Amelio is appointed as CEO and President of Lenovo.
2006	Lenovo introduces the first dual-core ThinkPad notebook PCs, improving productivity and extending battery life for up to 11 hours.
	Lenovo technology flawlessly supports the 2006 Olympic Winter Games in Torino, Italy, supplying 5,000 desktop PCs, 350 servers and 1,000 notebook computers. Lenovo also hosts seven Internet i.lounges for use by Olympic athletes and visitors.
	The first Lenovo-branded products outside of China debut worldwide. Researchers, scientists and product design teams from around the world combine Lenovo's heritage in enterprise and consumer PC technology to design the Lenovo 3000 product line, which features new desktop and notebook models specifically designed to provide worry-free computing to the small business market segment.

Marketing

Lenovo is active in making sure competitors make accurate and verifiable marketing claiming. Recently Dell has been receiving a lot of press coverage over its claim of having the world's most secure notebooks, specifically, its Latitude D630 and Latitude D830.

According to a National Advertising Division report released in late June 2008, Dell did not have enough evidence to support its claim as maker of the "world's most secure laptops" within its marketing campaign. Lenovo filed the complaint to NAD accusing Dell of making unverified claims.

Most of the criticism made by NAD is around data encryption, both disk encryption software and disk encryption hardware, used in Dell's commercial notebooks. Dell uses hardware-based full disk encryption and software-based full disk encryption from third party vendors such as Seagate Technology

"Although NAD determined that the advertiser could truthfully advertise its position as the first in the industry to combine these particular third-party components in creating secure systems for large businesses, NAD observed the distinction between the security provided to the individual computers and the security provided to a large network of computers." "Since not all of the components of the FDE Encryption Solution are equally relevant for all sizes of business, NAD recommended the advertiser make this distinction to the extent it intends to make broad security claims." "On the basis of the evidence in the record, NAD determined that advertiser demonstrated that it offered features of computer security that were both unique and meaningful to consumers." Laptops with full disk encryption are expected to have data-at-rest (DAR) protection, but still can be vulnerable to cold boot attack, a type of side channel attack, which takes advantage of data remanence . "However, it also determined that the broad claim 'World’s Most Secure' was not adequately supported and was appropriately discontinued."

Name

2008 Olympic Torch on display in Vilnius, February 16, 2008.

"Lenovo" is a portmanteau of "Le-" (from Legend) and "novo", pseudo-Latin for "new". The Chinese name (simplified Chinese: 联想; traditional Chinese: 聯想; pinyin: liánxiǎng) 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.

Sport sponsorships

Lenovo has actively been a sponsor of world sporting events after becoming a partner of the 2006 Winter Olympics and 2008 Summer Olympics. Lenovo also designed the Olympic torch for the 2008 Olympics. Lenovo is also sponsoring the World Anti-Doping Agency’s Athlete Outreach Program both the 2008 Beijing Olympic and Paralympic Games. In 2007, Lenovo sponsored the Formula One team WilliamsF1 and will sponsor the McLaren F1 team in 2009. They also sponsored the National Basketball Association (NBA) in 2006.. During that year, Lenovo used Brazilian soccer professional Ronaldinho to promote their products.

See also

• List of Chinese companies
• List of the world's largest companies
• List of computer system manufacturers
• List of company name etymologies

References

• Ling Zhijun, tr. Martha Avery The Lenovo Affair: The Growth of China's Computer Giant and Its Takeover of IBM-PC (Singapore: John Wiley & Sons [Asia] 2006). ISBN 9780470821930.

External links

• Official Website of Lenovo
• Lenovo notebooks, laptops and netbooks
• IBM PC and Lenovo PC Announcement
• Yahoo! - Lenovo Group Limited Company Yahoo Profile
• "Looking at the Free Market, and Seeing Red" -NY Times
• Lenovo blogs
• Lenovo Coupons