Lenovo Group

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This article is about the computer company, Lenovo Group. For the village in Bulgaria, see Lenovo, Bulgaria.

Lenovo Group Limited

Type of Company	Limited company
Founded	1984
Headquarters	Raleigh, North Carolina, USA
Key people	Yang Yuanqing, Chairman William Amelio, CEO
Industry	Computing
Products	Computers including the IBM-branded ThinkCentre and ThinkPad
Revenue	$13 billion USD (2005)
Employees	~19,000 (2004)
Website	www.lenovo.com

Lenovo Group Limited (Chinese: 联想集团有限公司; pinyin: Liánxiǎng Jítuán Yǒuxiàn Gōngsī), formerly known as Legend Group Ltd and New Technology Developer Incorporated (SEHK: 0992), is the largest personal computer manufacturer in the People's Republic of China, the largest in Asia-Pacific as of 2006, and as of 2005 was the third largest in the world (ninth before purchase of IBM's PC Division). The original company was founded in 1984 by a group of eleven engineers headed by Liu Chuanzhi in Beijing, but the listed holding company was incorporated in 1988 in Hong Kong, now a Special Administrative Region of China. After temporarily moving to Purchase, New York, USA, its headquarters are in Raleigh, North Carolina, USA, the home of IBM's former ThinkPad group.

"Lenovo" is a portmanteau word formed of "Le-" (from Legend) and "novo", pseudo-Latin for "new."

Along with desktop and laptop computers, Lenovo sells 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. Hoping to reach the many Chinese not yet online, Lenovo also offers Internet access through its FM365.com portal.

Lenovo is the subject of a book, "The Lenovo Affair: The Growth of China's Computer Giant and its Takeover of IBM-PC", by journalist Ling Zhijun, published 23 June 2006 by John Wiley & Sons.

On September 2006 the company followed Dell and Apple Computer and announced a large recall of Sony manufactured batteries, after a battery in one of its IBM Thinkpads was overheated, causing a laptop to catch fire at the Los Angeles International Airport [1].

1 History
2 Products
3 See also
4 External links
5 References

[edit] History

[edit] Purchase of IBM PC Division

Lenovo was relatively unknown outside People's Republic of China, but made news headlines in December 2004 with the announcement of its intent to acquire the PC division of IBM. Lenovo hoped to expand into Western markets to become the third largest PC manufacturer worldwide. Prior to the acquisition, Lenovo already controlled twenty-five percent of the Asian market, largely due to its ability to sell computers at value prices and China's high tariffs on imports. Lenovo paid $1.25 billion to IBM, splitting into $650 million cash and $600 million Lenovo stock. Furthermore, as part of the acquisition, Lenovo is allowed to use the IBM brand name for certain purchased products, like the ThinkPad, for an initial period of five years.

On March 9, 2005, it was announced that the Committee on Foreign Investment in the United States had completed its review of the deal. IBM and Lenovo completed the deal on May 1, 2005. As a result of the acquisition, Lenovo's product line includes the ThinkVision, ThinkPad, ThinkVantage, ThinkCentre, Aptiva, and NetVista. As of May 1, 2005 35.2% of Lenovo was owned by public shareholders, 45.9% by Legend Holdings Limited, and 18.9% by IBM.

[edit] Linux

IBM had supported and promoted Linux for many years, and ThinkPads in particular were popular with Linux users, so concern was raised[2] in early June 2006 by widely reported comments that: "We will not have models available for Linux, and we do not have custom order, either. What you see is what you get. And at this point, it's Windows." by Lenovo's worldwide product manager for the Lenovo 3000 (consumer focused) offerings. Later reports however [3] [4], corrected the misunderstanding. As of August 4, 2006 Lenovo has begun to offer its ThinkPad series notebooks with a "barebones" option (without any software pre-installed) upon request and, thanks to Lenovo's relationship with Novell, the ThinkPad T60p is now being shipped with SUSE Linux 10[5]. However, as of November 2006, their website does not offer either a barebones or a Linux option, only Windows XP Home and Windows XP Professional.

[edit] Legend-Lenovo-IBM Time Line

1980s

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 People's Republic of China. Legend Hong Kong is established.

1989: Beijing Legend Computer Group Co. is established.

1990s

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 People's Republic of 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. Lenovo 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. Lenovo 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 Enterprises ranking. Legend launches pioneering Internet PC, with its “one-touch-to-the-net” feature, which enables millions of Chinese PC users to easily access the Internet.

2000s

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 vendors.

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 as 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. Lenovo 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’s supercomputer, the DeepComp 1800 makes its debut. It is People's Republic of China’s first computer with 1,000 GFLOP (floating point operations per second) and People's Republic of China’s fastest computer for civilian use, ranked 43 rd in the Top 500 list of the world’s fastest computers. The mobile handset joint venture announced, marking Legend’s formal entry into the mobile handset business.

2003: Lenovo introduces the industry’s first notebook with an extended battery life of up to 11 hours. Lenovo introduces its ThinkCentre desktop PC line. Lenovo 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. Lenovo ships its 20-millionth ThinkPad notebook PC. 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 Road Show 2003 nationwide to promote Lenovo’s innovation. Lenovo successfully develops DeepComp 6800 in November 2003. It ranks 14 th on the global list.

2004: IBM PCD introduces the ThinkCentre ultra small desktop PC, no larger than a box of corn flakes. Lenovo introduces the first notebook with an integrated fingerprint reader. Lenovo ships its 100-millionth PC (counting both desktop and notebook computers). Lenovo becomes an Olympic worldwide partner. It is the first People's Republic of China's 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 the company a new international IT competitor and the third largest computing 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 ThinkPad X41 Tablet and the ThinkPad Z60. Lenovo becomes the world's largest provider of biometric-enabled PCs by selling its one-millionth PC with an integrated fingerprint reader. William Amelio is appointed as CEO and President of Lenovo.

2006: Lenovo introduces the first dual-core ThinkPad notebook PCs. Lenovo supplies the 2006 Olympic Winter Games in Torino, Italy with 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.