Lenovo Group Ltd., also known as Lenovo, is a China-based multinational company that operates in 180 markets across the globe. Lenovo manufactures and offers a wide portfolio of connected products such as PCs (Yoga, ThinkPad, Lenovo Legion), smartphones (Motorola), workstations, tablets, as well as augmented reality and virtual reality (AR and VR) devices, and smart home/office solutions.
In addition, Lenovo’s data center solutions (ThinkAgile a ThinkSystem) are creating capacity and computing power for the connections that are changing business and society. Lenovo is the world’s major personal computer vendor by unit sales since 2013. It markets Yoga series, ThinkPad laptops, IdeaCentre, and ThinkCentre lines of desktops. The company is also among the top four manufacturers of supercomputers worldwide, after HPE, IBM and Dell.
- 1984: Lenovo’s founding chairman, Liu Chuanzhi, together with 10 like-minded colleagues launched the New Technology Developer Inc. (the predecessor of the Legend Group) funded by the Chinese Academy of Sciences
- 1988: Legend Hong Kong was established
- 1990: The company launched its very first Legend PC and entered into the personal computer market with its own brand
- 1993: Legend entered the Pentium era by producing China’s first ‘586’ PC
- 1995: Company introduced the first Legend-brand server
- 1996: Company introduced the first Legend brand laptop
- 1999: The company became the top PC vendor in the Asia Pacific region
- 2002: Legend’s supercomputer, the DeepComp 1800, was launched
- 2003: Legend announced its new logo ‘Lenovo’ to prepare for its expansion and growth
- 2004: Lenovo and IBM announced an agreement by which Lenovo would acquire IBM’s Personal Computing Division
- 2005: The company acquired IBM’s Personal Computing Division and became the third-largest personal computer company in the world
- 2008: Lenovo’s ThinkPad X300 was called ‘the best laptop ever’ by BusinessWeek magazine
- 2011: Lenovo entered a joint venture with NEC Corporation, creating the largest PC company in Japan. The company acquired Medion, which is a PC and consumer electronics company based in Germany, in order to strengthen its presence in Western Europe.
- 2012: Lenovo entered into a joint venture with EMC Corporation to sell servers in China and develop storage solutions. The company acquired Stoneware, which is a software firm focused on cloud computing.
- 2013: Lenovo acquired CCE, which is a leading consumer electronics company in Brazil
- 2014: Lenovo purchased the System X server from IBM, and Motorola Mobility from Google
- 2016: The company expanded its partnership with SAP to develop agile cloud solutions. Lenovo announced a strategic partnership to develop, market, and sell a new family of Lenovo hyper converged appliances powered by Nutanix software. The company collaborated with Google to develop the world’s first mobile device with 3D motion tracking, advanced computer vision, and depth sensing.
The shareholding structure of Lenovo Group Ltd., according to the interest disclosed under the Securities and Futures Ordinance as of 31 March 2019, was Public – 64.8%, Legend Holdings Corporation (Parent Company) – 29.1%, Mr. Yang Yuanqing – 5.9%, and Directors – 0.2%
Financial results in perspective
Lenovo Total Revenue 2013-2019
- In Q1 2020/21, Lenovo generated a revenue of 13,348 US$ Million.
- The PC and Smart Devices group, which is one of Intelligent Device Groups’ (IDGs) two business units, recorded revenue of US$ 38.3 Billion in 2018, representing around 75% of the group’s total revenue
- The remaining 25% of revenue is split between the Mobile Business Group and the Data Centre Group, with 13% and 12% respectively
- The second IDG business unit – the Mobile Business Group – includes its Motorola Inc. acquisition that growing 12% with record full-year revenue of US$ 6.1 billion
- The Data Center Group achieved fastest Year-on-Year growth, with revenue of US$ 6.6 Billion, owing to the acquisition of IBM’s x86 server business
Performance of Geographies
- Asia Pacific is estimated to account for 43% of the company’s total revenue
- The company accelerated execution of strategy transformation and further invested in five major areas: smart edge computing, Internet of Things (IoT), cloud, Artificial Intelligence (AI), and big data in vertical industries
- The company is focusing on investing on innovation, providing better user experience, core component technical specification, along with developing better end-to-end application platforms
- The company is focusing on extending its leadership position, increasing profitability in China, and relationship businesses in mature markets
- The company continues to invest in building a global brand, which makes it more competitive in consumer sales, improves profitability, and also enhances value of products
Achievements in 2016 – 2017
- The company revealed the industry’s first modular smartphone Moto Z
- The company introduced Low Temperature Solder (LTS) manufacturing process, estimated to lower carbon emissions by 35%, while also increasing efficiency
- Evolved focus beyond tablets and PCs to personal computing as well as launching the industry’s first Google Tango enabled Augmented Reality (AR) device
- The company was awarded 18 Red Dot Design, 6 iF, and 149 awards across major industry events such as MWC, CES, and IFA, on the basis of innovation, value/selection, warranty, support, and design. In addition, Laptop Magazine named Lenovo the ‘Best Laptop Brand’.
Achievements in 2018 – 2019
- In February 2019, Lenovo launched its new set of laptops and other devices at MWC 2019. These include a Bluetooth 5-enabled headset and a portable monitor.
- In January 2019, Lenovo launched a smart clock with its smart display and smart home essentials devices
- In August 2018, Lenovo launched multiple Yoga series devices, which include the latest 2-in-1 laptop Lenovo Yoga C930, and Yoga S730. The highlight of the new series is ultraportable dual-display Yoga Book C930 laptop with LCD and e-ink screens.
- In May 2018, Fujitsu sold 51% stake of its subsidiary Fujitsu Client Computing Limited (FCCL) to Lenovo Group Ltd.
- In July 2018, Google LLC partnered with Lenovo to manufacture a new category of devices called ‘Smart Displays’, which are interactive screens for smart home devices with Google Assistant.
- In January 2018, Google LLC collaborated with Lenovo to launch a stand-alone headset, which connect to PCs or smartphones wirelessly
- In October 2018, Sony Interactive Entertainment (SIE) and Lenovo group signed a two-year patent license agreement. This agreement allows the use of PlayStation VR’s (PS VR) industrial design for the Lenovo Mirage Solo VR headset.
What’s happening in 2020
- lenovo has set to achieve science-based greenhouse gas emission reduction targets for 2030, to limit climate change to a 1.5 degree Celsius increase in global temperature to reduce the environmental damage in terms of what scientist has predicted an increase of 4-6 degree celsius due to global warming by 2050.
- Lenovo in fiscal year 19/20 hit a sustainable achievement of 92% reduced emissions.
- Lenovo in 2020 is about a US$50 billion Fortune Global 500 company.
- Lenovo’s Mobile Business Group (MBG) is impacted by COVID-19, with revenue decreased by YoY in Q1 2020-2021.
- Lenovo’s Data Center Group (DCG) showed revenue growth of almost 20% to US$1.6 billion in Q1 2020-2021.
- Lenovo’s Software and Services revenue grew up to 38% year-on-year to over US$1 billion in Q1 2020-2021.
- Lenovo enabled space architects to test Lunar Housing in Greenland which will rely on Lenovo technology for survival and the data collection.
- According to the Lenovo Q1 report, it holds its place at first in the global market for PC and tablets as compared to HP and Apple
- Lenovo’s mobile group outgrew in the markets like Latin America, North America and Europe.