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Lenovo’s "ThinkLo" Notebook Strategy

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Lenovo’s "ThinkLo" Notebook Strategy

alt Lenovo CEO Yang Yuanqing wants to break into rising economies with low-price products before focusing on mature markets. Lenovo will restructure, splitting into two geo groups (high end, mature markets vs. low-end, emerging markets) and two product groups by brand (THINK, corporate and IDEA, consumer).

Bill Amelio (the IBMer that took the job of CEO after Lenovo bought the IBM PC unit) resigned in Feb. when his 3-year service contract ended. So you can expect more Lenovo “ Ideas” and less IBM “Think-ing” at Lenovo HQ..

Market share first and profits second, as Lenovo will wait for the economy to improve before returning focus to mature markets. Lenovo will push its entry-level products in mature markets, entering the low-end and then adding netbooks and ultra-portable segments.

Lenovo lost $97 million in Q4 2008 but will release 50 new PC models in its next fiscal year (24 desktop PCs and more than 20 notebooks). An ultra-portable IdeaPad Y-series notebooks and its IdeaCentre A600 (slim all-in-one desktop) are two examples of Lenovo direction.

Go Lenovo Takes the Low Road