Lenovo takes over X86 server business from IBM

[jamahir]

QNX may be the worlds best OS, but what good is it if no one buys the phones that use it? You don't buy a dead elephant for one tiny shiny nail

you are right, of course... but qnx is not only within blackberry phones...blackberry phones are themselves loaded with qnx os separately... other kinds of qnx installations don't depend on blackberry phones... qnx is a general purpose os which can be loaded from server machines to military single-board computers to cars to to medical instruments to spaceship computers to outdoor industrial devices anything really...

i myself had installed qnx version 6 ( neutrino, early version ) on my desktop in year 2000... my machine had just 32 mb ram and a intel p-3 processor... the machine ran beautifully, qnx graphics were beautiful and response was fast... only problem was that the qnx installation did not detect my on-board sound chip... no other problem.

that version of qnx could be loaded onto a floppy disk and run directly from there... qnx is a marvelous os with the best kernel architecture... microkernel... makes the system very non-crashable, modular, responsible... [ though i don't like the term ] real time.

so, the chinese purchase of blackberry is strategically sound.

 

[Luca1]

Let's see how Lenovo will turn in around, if the acquisition ever takes place. Maybe they will not allow the sale on grounds of national security.

If so, than Lenovo will save lots of money

 

[xunzi]

Lenovo is simply the best computer platform right now. It has no competition in the PC world. All IT and tech pro used Lenovo because what it stands.

 

[TaiShang]

Lenovo To Invest Additional USD5 Million In Thailand
October 2014

Lenovo plans to increase its Thai market share as it invests an additional USD5 million in Thailand in 2014.

Jeerawut Wongpimonporn, general manager of Lenovo Thailand, said that Lenovo's Asian headquarters has approved this additional budget plan. Of the total investment, USD2 million to USD3 million will be used to expand marketing channels, enhance marketing, and improve operation and management; while the remainder will be used for office maintenance and the creation of a server demonstration center.

Wongpimonporn revealed that Lenovo Thailand currently has three major businesses: PC sales, mobile phones and servers. The company plans to develop new businesses like cloud computing and an ecosystem service in the future.

According to Koh Kong Meng, vice president and general manager of the Lenovo Asia region, holding its server business momentum can help maintain PC market share and improve smartphone and tablet sales. In 2013, Lenovo's server business market value in Southeast Asia reached USD980 million.

 

[tonyget]

Lenovo Completes $2.9 Billion Motorola Purchase From Google | Re/code


When Motorola Mobility President Rick Osterloh said Tuesday that the Lenovo deal was nearly done, he wasn’t kidding.

Lenovo officially completed its $2.9 billion deal with Google early Thursday.

“Today we achieved a historic milestone for Lenovo and for Motorola – and together we are ready to compete, grow and win in the global smartphone market,” Lenovo CEO Yang Yuanqing said in a statement. “By building a strong number three and a credible challenger to the top two in smartphones, we will give the market something it has needed: choice, competition and a new spark of innovation.”

Osterloh will remain in his role, with Motorola remaining a wholly owned subsidiary with its headquarters in Chicago.

“Lenovo has a huge China business, a great business throughout the Asia-Pacific and Europe,” Osterloh said during his appearance at Code/Mobile on Tuesday. “Right away, Motorola will be all over the world. It will double the number of countries today.”

Google, meanwhile, retains ownership of the bulk of Motorola patent portfolio, with Lenovo getting a license to the patents. Some 2,000 patents and a large number of patent cross-licensing deals will go with Motorola to Lenovo.

 

[cirr]

• October 30, 2014, 8:26 P.M. ET

Lenovo Contests IDC Ranking; How Relevant is Motorola?

By Shuli Ren

Lenovo (0992.HK/LNVGF) yesterday closed the $2.9 billion merger deal with Motorola Mobility, which Google (GOOGL) divested.

After the deal close, my colleague Tiernan Ray of Barron’s Tech Trader Daily blog got the following message from Lenovo:

Yesterday’s IDC smartphone data was a day too early. As of this morning,Motorola and Lenovo are a clear #3 with 25.6 million devices, 8.7% market share and a global footprint.”

Background: Xiaomi shipped 17.3 million w 5.3% share, Lenovo shipped 16.9 million, Motorola shipped 8.7 million devices, so combined Lenovo+Moto shipped 25.6 million, w 8.7% share.

In the third-quarter, for the first time, Chinese smartphone manufacturer Xiaomi joined the top 3, after Samsung Electronics (005930.KS/SSNLF) and Apple (AAPL). See Tiernan’s blog “Samsung Falls, Apple Rises, Xiaomi Shoots Out of Nowhere in Q3 Smartphone Rankings“.

IDC’s third-quarter ranking is history; the more relevant is the future. Can Motorola Mobility help Lenovo in its quest for smartphone users worldwide?

Strategy Analytics is skeptical:

The “big three” DISDVANTAGES of the merger include:

1. Lenovo is slowing down. Lenovo’s rapid smartphone growth of recent years is now coming to an end, due to fierce competition from Xiaomi and others. Based on our data, Lenovo’s global smartphone shpiments annual growth rate has more than halved from +74% YoY in Q3 2013 to +30% YoY in Q3 2014;

2. Motorola is losing money. Motorola continues to make hefty financiallosses, due to a relatively large cost-base. Based on Strategy Analytics data, Motorola has NOT made a profit for 4 years;

3. Smartphone mergers usually take several years to integrate. For example, TCL-Alcatel, a Chinese and French merger, took around 5 years to stabilize and sustain growth.

Clearly, Lenovo and Motorola have strong tailwinds — such as 8% global smartphone marketshare and two well-known brands. But Lenovo and Motorola also face major headwinds. Lenovo’s golden era of easy smartphone growth is coming to an end, while Motorola continues to lose money. Mergingthese two firms next year will NOT be as easy as many expect.

But Barclays‘s Kirk Yang and Ric Cheng are more encouraging, saying Motorola could break even in only 2-4 quarters:

We believe it should be easy for MOT to at least double its smartphone shipments this year, helped by strong MOTO G and MOTO E demand (mainstream models), while MOTO X targets the high end. As MOT’s ASP is around US$200, it complements Lenovo’s ASP of around US$70 to broaden the product portfolio and possibly embark on a dual-brand strategy in selected markets. MOT will bring Lenovo more IP than its China competitors and give Lenovo a better chance to succeed outside of China, especially in mature markets, in our view. Lenovo reiterated its expectation that it would take 4-6 quarters after the deal closes for the combined business to break even, but we believe it should only take 2-4 quarters since MOT’s smartphone business is already gaining share in 1H14 (prior to the closing) and we expect strong synergies can be achieved between Motorola and Lenovo.
​

Ok，so the top-5 smartphone makers for Q4 2014 will be：

（1）Samsung
（2）Apple
（3）Lenovo
（4）Xiaomi
（5）Huawei（replacing LG）

 

[TaiShang]

Lenovo plans outward push

Lenovo Group can become a global information technology giant if it uses its global resources in an optimal manner, Yang Yuanqing, chairman and chief executive of the world's largest personal computer maker, said on Wednesday.

Judicious use of research and development expertise in developed economies and the adequate labor resources in emerging markets have fueled Lenovo's rapid growth during the past decade, Yang said.

"Now that we have a solid manufacturing platform, Lenovo should move on to its next goal of building a brand name that adequately showcases its hardware capabilities."

Lenovo took the first steps for the global transformation in 2005 when the Beijing-based company acquired IBM Corp's PC unit for $1.75 billion. Since then, it has not only managed to make the business profitable, but also became the industry leader two years ago.

The company recently closed two multi-billion-dollar buyouts of IBM Corp's x86 server unit and Motorola Mobility, a United States-based maker of smartphones.

Yang said better use of the global value chain will become increasingly important for Lenovo as it seeks more top positions in the global mobile devices market.

The company owns manufacturing plants in a number of Asia-Pacific economies including China, India, Mexico, Brazil and the United States. Its major research and development facilities are in Beijing and Raleigh, North Carolina in the US.

"Unlike other electronic vendors, we prefer to control the manufacturing process at our end itself," said Yang. "It helps in better control of production costs and also provides a well-rounded development platform for the research team."

Personal computers are still the biggest business for the Chinese company.

According to research firm IDC, Lenovo shipped 15.7 million units of PCs worldwide in the third quarter, significantly outperforming US-based Hewlett-Packard Co and Dell Inc. The Chinese company now accounts for about one-fifth of the global PC shipments.

For the quarter ended September, the company posted revenue of about $10.5 billion, a 7 percent growth over the corresponding period in 2013.

Roughly 60 percent of the company's businesses are located outside China.

Lenovo, along with Huawei Technologies Co Ltd and ZTE Corp, were among the first Chinese technology companies to tap the overseas markets.

The "three musketeers" of Chinese IT going out are trying to take a bigger share in global smartphone market after penetration rate in China slowed last year.

Wang Jianlin, chairman of the Dalian Wanda Group, said global resource allocation has become a basic strategy for Chinese enterprises who are seeking a global presence.

"With growing investment in overseas markets, China will be home to the most multinationals in the next decade," Wang said, adding local technology and business innovation will fuel Chinese economy in the long run.

Earlier this month, Lenovo hired Jerry Yang, founder and former CEO of Yahoo Inc, to become the company's independent non-executive director.

The company hopes the US Internet magnet's global vision will help Lenovo "stimulate innovation" on its way to challenge Apple Inc and Samsung Electronics Co Ltd.

"His experience as an entrepreneur, unique global perspective, and pioneering spirit as one of the great innovators of the Internet era are all qualities that we value," said the CEO.

 

[cirr]

The next logic step for Lenovo is to buy out HP's PC business。

 

[jamahir]

The next logic step for Lenovo is to buy out HP's PC business。

the next step for china would be to design operating system and microprocessor... using western designs won't help in crashing companies like intel, ibm, amd, arm, microsoft and red hat.

 

[cirr]

the next step for china would be to design operating system and microprocessor... using western designs won't help in crashing companies like intel, ibm, amd, arm, microsoft and red hat.

But not for Lenovo。Lenovo is mostly a hardware company.

China is doing all the things you mentioned and more.

 

[jamahir]

But not for Lenovo。Lenovo is mostly a hardware company.

China is doing all the things you mentioned and more.

1. if you mean loongson processor, that is mips architecture... mips is american.
2. if you mean kylin operating system, that is linux... western, again.

i don't think there is any local design... i would know... i am involved in designing a microprocessor ( all new design ).

 

[Keel]

1. if you mean loongson processor, that is mips architecture... mips is american.
2. if you mean kylin operating system, that is linux... western, again.

i don't think there is any local design... i would know... i am involved in designing a microprocessor ( all new design ).

linux is a free universal language.. aint matter if it was created by a Nordic guy
you cant find another loongson processor made in america.
Of course they can finally trace their origins to their inventors for the basics
Paper is invented by Chinese. That does not erase the authorship right of any book writer

 

[jamahir]

linux is a free universal language.. aint matter if it was created by a Nordic guy
you cant find another loongson processor made in america.
Of course they can finally trace their origins to their inventors for the basics
Paper is invented by Chinese. That does not erase the authorship right of any book writer

i only meant that having a actual chinese microprocessor would be intellectually interesting than simply putting a factory to output western designs... and it is easier to design one's own than to waste time in understanding others' design... at least, that is true for me as a designer.

 

[Keel]

The next logic step for Lenovo is to buy out HP's PC business。

Time will tell if HP will succumb and come to us for a deal, like what IBM did

i only meant that having a actual chinese microprocessor would be intellectually interesting than simply putting a factory to output western designs... and it is easier to design one's own than to waste time in understanding others' design... at least, that is true for me as a designer.

I am not sure if what your claim that Loongson is not a chip designed by us
Many times it is extremely unrealistic to start everything from scratch and very cost inefficient to do so like many products are invented by western people and later such original inventions are also regarded as innovations by adding indigenous features to them
Why "re invent the wheels"?
In the science world, there are researches for basic theories and other researches for applications - both endeavours are highly respected.

 

[jamahir]

In the science world, there are researches for basic theories and other researches for applications - both endeavours are highly respected.

agreement... we all use electrical machinery which work because of an englishman's invention of the electric generator.

and later such original inventions are also regarded as innovations by adding indigenous features to them

sincerely, my point was that there is nothing much indigenous to loongson... i do respect the chinese companies adopting and adapting but i had a simple point to make...