http://www.usatoday.com/tech/news/2006-02-22-lenovo-pcs_x.htm
No. 3 PC-maker Lenovo plans to introduce itself to the world Thursday by
launching the first Lenovo-branded PCs outside China.
Lenovo is best known as the Chinese firm that last year bought IBM's PC unit,
maker of the ubiquitous ThinkPad business laptop. But it wants to be much more:
a global rival to Dell and Hewlett-Packard.
To do that, it's launching a "Lenovo 3000" line of desktops and notebooks for
small businesses. They will be sold through resellers and stores such as Office
Depot, and will start at $349.
The new products are not expected to hurt sales of the ThinkPad, which is
designed for very large companies and starts at $749. Instead, Lenovo hopes the
ThinkPad's reputation, coupled with the new product line and an aggressive
Olympics advertising campaign, will help the company achieve its longtime goal:
breaking out of the Chinese market.
"Lenovo acquired IBM's PC division to get its worldwide sales and
distribution and marketing expertise," says Lenovo Senior Vice President Deepak
Advani. "We want to take some of the magic we've been working in China and take
it to the rest of the world."
It's the first big post-merger move for Lenovo, which spent more than a year
trying to get on its feet. It had to overcome resistance from U.S. officials who
worried that a Chinese firm buying part of IBM raised national security issues —
even though Lenovo moved its headquarters to New York. A federal committee
eventually approved the acquisition.
Lenovo then had to merge two staffs that didn't speak the same language and
were on opposite sides of the world. The combined company's first CEO, former
IBM executive Stephen Ward, left in December after 12 months in part because he
had trouble connecting with the Chinese, says technology analyst Roger Kay at
Endpoint Technologies Associates. Lenovo said former Dell senior vice president
William Amelio, an executive with more experience in Asia, was a better fit to
help the company grow.
Lenovo also had to prove it could maintain IBM's high standards. So far, it's
done well, especially with innovative products such as a ThinkPad that can
connect to a cellphone network to transmit data, says tech analyst Samir
Bhavnani at Current Analysis.
But Lenovo needs to expand far beyond IBM staples if it wants to grow, Kay
says. The small-business products are a first step, as are the frequent Olympics
advertisements, he says. But more is needed. "Let's see the synergies," he says.
"Let's see the consumerish product that gets your name out there." Still, Lenovo
needs to choose carefully, since any misstep could tarnish the still relatively
unknown brand, Bhavnani says.
