{"id":77,"date":"2005-08-10T07:26:09","date_gmt":"2005-08-10T11:26:09","guid":{"rendered":"http:\/\/www.maindot.com\/technologynews\/archives\/lenovos-profit-rises-after-ibm-takeover\/"},"modified":"2005-08-10T07:26:09","modified_gmt":"2005-08-10T11:26:09","slug":"lenovos-profit-rises-after-ibm-takeover","status":"publish","type":"post","link":"http:\/\/www.maindot.com\/technologynews\/archives\/lenovos-profit-rises-after-ibm-takeover\/","title":{"rendered":"Lenovo’s Profit Rises After IBM Takeover"},"content":{"rendered":"

Here are some good news for IBM ThinkPad laptops fans (actually now are Lenovo ThinkPad laptops I think).
\nBloomberg<\/a> reports that Lenovo Group Ltd., China’s biggest computer maker, posted an unexpected gain in first-quarter profit after buying International Business Machines Corp.’s personal- computer business:<\/p>\n

Net income rose to HK$357 million ($46 million), or 4.12 Hong Kong cents a share, in the three months ended June 30, from HK$336.8 million, or 4.50 cents, a year earlier. Stephen Ward, named chief executive of Beijing-based Lenovo after the April acquisition, said in a statement today that the new business returned to profit and helped sales more than triple. <\/p>\n

Ward said the acquisition of the IBM unit, which had losses totaling $965 million from 2001 to the first half of last year, is already yielding cost benefits, including lower purchasing costs. The $1.25 billion takeover reduced Lenovo’s reliance on China, where competition with Dell Inc. pushed prices lower.\n<\/p><\/blockquote>\n

<\/p>\n

Some opinions:<\/p>\n

“I’ve been pretty optimistic on them,” said Jean-Marc Champagne, an associate director of institutional sales at Sinopac Securities Asia Ltd. in Hong Kong. “They do things in a more cost-effective way than U.S. competitors.” <\/p>\n

“We’re generating the anticipated benefits of the acquisition quickly, ahead of schedule,” Ward said. The acquired business “is very different from what it was under IBM.” <\/p>\n

About the Lenovo – IBM takeover<\/strong><\/p>\n

Lenovo in March borrowed $600 million from a group of banks to help finance the IBM acquisition. It also assumed $500 million of debt as part of the purchase. <\/p>\n

The takeover catapulted Lenovo past Hewlett-Packard as the largest PC seller in Asia-Pacific outside Japan, with 19 percent of the market in the second quarter to HP’s 12 percent, according to researcher IDC. Dell ranked third with a 9 percent market share. <\/p>\n

The company interviewed 5,000 customers, 93 percent to 95 percent of whom were either “very comfortable” or at least neutral about remaining with Lenovo, Ward said.\n<\/p><\/blockquote>\n

Very interesting news. We hope ThinkPad laptops will remain the same good laptops and perhaps even better…<\/p>\n","protected":false},"excerpt":{"rendered":"

Here are some good news for IBM ThinkPad laptops fans (actually now are Lenovo ThinkPad laptops I think). Bloomberg reports that Lenovo Group Ltd., China’s biggest computer maker, posted an unexpected gain in first-quarter profit after buying International Business Machines Corp.’s personal- computer business: Net income rose to HK$357 million ($46 million), or 4.12 Hong […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"http:\/\/www.maindot.com\/technologynews\/wp-json\/wp\/v2\/posts\/77"}],"collection":[{"href":"http:\/\/www.maindot.com\/technologynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.maindot.com\/technologynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.maindot.com\/technologynews\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/www.maindot.com\/technologynews\/wp-json\/wp\/v2\/comments?post=77"}],"version-history":[{"count":0,"href":"http:\/\/www.maindot.com\/technologynews\/wp-json\/wp\/v2\/posts\/77\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.maindot.com\/technologynews\/wp-json\/wp\/v2\/media?parent=77"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.maindot.com\/technologynews\/wp-json\/wp\/v2\/categories?post=77"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.maindot.com\/technologynews\/wp-json\/wp\/v2\/tags?post=77"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}