Lenovo

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Lenovo Group Ltd.

Lenovo corporate campus in Beijing, China

Native

name
Type

Public

Traded as

SEHK: 0992, OTC Pink: LNVGY

Industry

Computer hardware
Electronics

Founded

1984 (Beijing, China)

Founder

Liu Chuanzhi

Headquart

Haidian District, Beijing, China

ers

Morrisville, North Carolina, U.S.

Area

Worldwide

served
Key people

Yang Yuanqing
(Chairman and CEO)

Products

Smartphones, desktops, servers,notebooks, tablet

computers,netbooks, peripherals, printers,televisions, sca
nners, storage devices

Revenue

US$ 38.70 billion (2014)[1]

Operating

US$ 1.05 billion (2014)[1]

income
Net income

US$ 817 million (2014)[1]

Total

US$ 18.35 billion (2014)[1]

assets
US$ 3.01 billion (2014)[1]

Total
equity
Number of

54,000 (2014)[2]

employees

Subsidiarie

Motorola Mobility[3]

Website

www.lenovo.com

Lenovo
Simplified Chinese

Traditional Chinese

Literal meaning

Lenovo Group Ltd.

Lenovo Group Ltd. /lnovo/ is a Chinese multinational computer technology company with
headquarters in Beijing, China, and Morrisville, North Carolina, United States.[4] It designs, develops,
manufactures and sells personal computers, tablet computers, smartphones, workstations, servers,
electronic storage devices, IT management software and smart televisions. In 2014, Lenovo was
the world's largest personal computer vendor by unit sales.[5] It markets the ThinkPad line of
notebook computers and the ThinkCentre line of desktops.[6]
Lenovo has operations in more than 60 countries and sells its products in around 160 countries.
Lenovo's principal facilities are in Beijing, Morrisville and Singapore, with research centers in those
locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in China, and Yamato in
Kanagawa Prefecture, Japan. It operates a joint venture with EMC, LenovoEMC, which
sells network-attached storage solutions. It also has a joint venture with NEC, Lenovo NEC
Holdings, which produces personal computers for the Japanese market.
Lenovo was founded in Beijing in 1984 as Legend and was incorporated in Hong Kong in 1988.
Lenovo acquired IBM's personal computer business in 2005 and agreed to acquire its Intel-based
server business in 2014. Lenovo entered the smartphone market in 2012 and as of 2014 is the
largest vendor of smartphones in Mainland China. In January 2014, Lenovo agreed to acquire the
mobile phone handset maker Motorola Mobility from Google, and in October 2014 the deal was
finalized.[7][8]
Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng ChinaAffiliated Corporations Index, often referred to as "Red Chips."
Contents

1 Name

2 History
o

2.1 Founding and early history

2.2 IPO and secondary offerings

2.3 Tianxi

2.4 Mergers and acquisitions

2.5 Superfish incident

3 Products and services

o

3.1 Personal and business computing

3.2 Smartphones

3.3 Tablets

3.4 Smart televisions

3.5 Wearables

3.6 DOit apps

4 Operations

5 Corporate affairs
o

5.1 Financials and market share

5.2 Ownership

5.3 Corporate culture

5.4 Leadership

6 Marketing and sponsorships

o

6.1 Emerging markets

6.2 United States

6.3 Ashton Kutcher

6.4 Kobe Bryant

6.5 Olympics

6.6 YouTube Space Lab

6.7 NFL

6.8 The Pursuit

7 See also

8 References

9 Further reading

10 External links

Name[edit]

Lenovo advertisement at theConsumer Electronics Show, 2012

"Lenovo" is a portmanteau of "Le-" (from Legend) and "novo", Latin ablative for "new." The Chinese
name (simplified Chinese: ;traditional Chinese: ; pinyin: linxing) means "association" (as
in "word association") or "connected thinking" but can also implycreativity.[9]
For the first 20 years of its existence, the company's English name was "Legend" (in Chinese
Lianxiang). In 2002, Yang Yuanqingdecided to abandon use of the Legend brand name in order to
expand outside of China. The "Legend" name was already in use by many other businesses
worldwide, making it impossible to register in most jurisdictions. In April 2003, the company publicly
announced its new name, "Lenovo," with a large media campaign involving huge billboards and
primetime television ads. Lenovo spent 18 million RMB on an eight-week television advertising
campaign. The billboards featured the Lenovo logo against blue sky with copy that read,
"Transcendence depends on how you think." By the end of 2003, Lenovo had spent a total of 200
million RMB on rebranding.[10]

History[edit]
Founding and early history[edit]
Liu founded Lenovo in 1984 with a group of ten engineers in Beijing with 200,000 yuan. Lenovo
officially states that it was founded on 1 November 1984. Lenovo's incorporation was approved by
the Chinese government on the same day. Jia Xufu, one of the founders of Lenovo, indicates the
first meeting in preparation for starting the company was held on 17 October of the same year.
Eleven people, the entirety of the initial staff, attended. Each of the founders were middle-aged
members of the Institute of Computing Technology, Chinese Academy of Sciences. The 200,000
yuan used as start-up capital was approved by Zeng Maochao. The name for the company agreed
upon at this meeting was the Chinese Academy of Sciences Computer Technology Research
Institute New Technology Development Company.[10]
Their first significant effort, an attempt to import televisions, failed. The group rebuilt itself within a
year by conducting quality checks on computers for new buyers. Lenovo soon started developing a
circuit board that would allow IBM-compatible personal computers to process Chinese characters.
This product was Lenovo's first major success. Lenovo also tried and failed to market a digital watch.
Liu said, "Our management team often differed on which commercial road to travel. This led to big
discussions, especially between the engineering chief and myself. He felt that if the quality of the
product was good, then it would sell itself. But I knew this was not true, that marketing and other
factors were part of the eventual success of a product." Lenovo's early difficulties were compounded
by the fact that its staff had little business experience. "We were mainly scientists and didn't
understand the market," Liu said. "We just learned by trial-and-error, which was very interestingbut
also very dangerous," said Liu. In 1990, Lenovo started to manufacture and market computers using
its own brand name.[11]

In May 1988, Lenovo placed its first advertisement seeking employees. The ad was placed on the
front page of the China Youth News, and it was quite rare in China at that time. Out of the 500
respondents, 280 were selected to take a written employment exam. 120 of these candidates were
interviewed in person. Although interviewers initially only had authority to hire 16 people, 58 were
given offers. The new staff included 18 people with graduate degrees, 37 with undergraduate
degrees, and three students with no university-level education. Their average age was 26. Yang
Yuanqing, the current CEO of Lenovo, was among that group. [10]
Liu Chuanzhi, received government permission to open a subsidiary in Hong Kong and was allowed
to move there along with five other employees. Liu's father, already in Hong Kong, furthered his
son's ambitions through mentoring and facilitating loans. Liu moved to Hong Kong in 1988. In order
to save money during this period, Liu and his co-workers walked instead of taking public
transportation. In order to keep up appearances, they rented hotel rooms for meetings. [10]

IPO and secondary offerings[edit]

Lenovo became publicly traded after a 1994 Hong Kong listing that raised nearly US$30 million.
Prior to its IPO, many analysts were optimistic about Lenovo. The company was praised for its good
management, strong brand recognition, and growth potential. Analysts also worried about Lenovo's
profitability. Lenovo's IPO was massively over-subscribed. On its first day of trading, the company's
stock price hit a high of HK$2.07 and closed at HK$2.00. Proceeds from the offering were used to
finance sales offices in Europe, North America, and Australia; expand and improve production and
research and development; and increase working capital.
When Lenovo was first listed, its managers thought the only purpose of going public was to raise
capital. They had little understanding of the rules and responsibilities that went along with running a
public company. Before Lenovo conducted its first secondary offering in 1997, Liu proudly
announced the company's intent to mainland newspapers only to have its stock halted for two days
by regulators to punish his statement. This occurred several times until Liu learned that he had to
choose his words carefully in public. The first time Liu traveled to Europe on a "roadshow" to discuss
his company's stock, he was shocked by the skeptical questions he was subjected to and felt
offended. Liu later came to understand that he was accountable to shareholders. He said, "Before I
only had one boss, but CAS never asked me anything. I relied on my own initiative to do things. We
began to think about issues of credibility. Legend began to learn how to become a truly international
company."[10]
In order to fund its continued growth, Lenovo issued a secondary offering of 50 million shares on the
Hong Kong market in March 2000 and raised about US$212 million.[10]
Mary Ma, Lenovo's chief financial officer from 1990 to 2007, was in charge of investor relations.
Under her leadership, Lenovo successfully integrated Western-style accountability into its corporate
culture. Lenovo's emphasis on transparency earned it a reputation for the best corporate governance
among mainland Chinese firms. All major issues regarding its board, management, major share
transfers, and mergers and acquisitions were fairly and accurately reported. While Hong Kong listed
firms were only required to issue financial reports twice per year, Lenovo followed the international
norm of issuing quarterly reports. Lenovo created an audit committee and a compensation
committee with non-management directors. The company started roadshows twice per year to meet
institutional investors. Ma organized the first-ever investor relations conference held in Mainland
China. The conference was held in Beijing in 2002 and televised on CCTV. Liu and Ma co-hosted
the conference and both gave speeches on corporate governance. [10]

Tianxi[edit]
The Tianxi was designed to make it easy for inexperienced Chinese consumers to use computers
and access the internet. One of its most important features was a button that instantly connected
users to the internet and opened the web browser. It was co-branded with China Telecom and one
year of internet service was included in its price. The Tianxi was released in 1998. It was the result of

two years of research and development. It had a pastel-colored, shell-shaped case and a seven-port
USB hub under its screen. As of 2000, the Tianxi was the best-selling computer in Chinese history. It
sold more than 1,000,000 units in 2000 alone.[12]

Mergers and acquisitions[edit]

Lenovo works to integrate the management of each newly acquired company into its larger culture.
Lenovo has a dedicated mergers and acquisitions team that tracks the progress of these
integrations. Lenovo has an annual meeting where the management of newly acquired companies
meet with its top 100 executives. In these meetings, held in English, Lenovo explains its global
strategy and how new executives fit in.[13]
IBM[edit]

The ThinkPad logo as shown on the ThinkPad x100e notebook computer.

Lenovo acquired IBM's personal computer business in 2005, including the ThinkPad laptop and
tablet lines.[14] Lenovo's acquisition of IBM's personal computer division accelerated access to foreign
markets while improving both its branding and technology.[15] Lenovo paidUS$1.25 billion for IBM's
computer business and assumed an additional US$500 million of IBM's debt. This acquisition made
Lenovo the third-largest computer maker worldwide by volume.[16]
In regards to the purchase of IBM's personal computer division, Liu Chuanzhi said, "We benefited in
three ways from the IBM acquisition. We got the ThinkPad brand, IBM's more advanced PC
manufacturing technology and the company's international resources, such as its global sales
channels and operation teams. These three elements have shored up our sales revenue in the past
several years."[16]
IBM acquired an 18.9% shareholding in Lenovo in 2005 as part of Lenovo's purchase of IBM's
personal computing division.[17] Since then, IBM has steadily reduced its holdings of Lenovo stock. In
July 2008, IBM's interest in Lenovo fell below the 5% threshold that mandates public disclosure. [18]
IBM's Intel based server lines, including IBM System x and IBM BladeCenter were sold to Lenovo in
2014.[19] Lenovo says it will gain access to more enterprise customers, improve its profit margins, and
develop a closer relationship with Intel, the maker of most server processors, through its acquisition
of IBM's x86-based server business.[20] On 1 October 2014, Lenovo closed its acquisition of IBMs
server division, with the final price put at $2.1 billion.[21] Lenovo said this acquisition came in at a price
lower than the previously announced $2.3 billion partially because of a change in the value of IBM
inventories.
The deal has been already approved by Europe, China and the United States. The US Department
of Treasury CFIUS (Committee on Foreign Investment in the United States) was reportedly the last
hurdle for Lenovo since the US has the strictest policies. According to Timothy Prickett-Morgan from
Enterprise Tech, the deal still awaits approval of regulators in China, the European Commission,
and Canada.[22]

After closing, Lenovo said that its goal was to become the world's largest maker of servers. Lenovo
also announced plans to start integrating IBM's workforce. [23] The acquisition added about 6500 new
employees to Lenovo. Lenovo said that it has no immediate intent to cut jobs. Lenovo said that
positions in research and development and customer-facing roles such as marketing would be
"100% protected" but expected "rationalization" of its supply chain and procurement. [24]
Lenovo said that its x86 servers will be available to all its channel partners. Lenovo plans to cut
prices on x86 products in order to gain market share. [25]
Mobile devices[edit]

The Vibe X smartphone presented by models at launch.

Lenovo sold its smartphone and tablet division in 2008 for US$100 million in order to focus on
personal computers and then paidUS$200 million to buy it back in November 2009.[26] As of 2009, the
mobile division ranked third in terms of unit share in China's mobile handset market. [27] Lenovo
invested CN100 million in a fund dedicated to providing seed funding for mobile application
development for its LeGarden online app store. As of 2010, LeGarden had more than 1,000
programs available for the LePhone. At the same time, LeGarden counted 2,774 individual
developers and 542 developer companies as members.[28]
Lenovo entered the smartphone market in 2012 and quickly became the largest vendor
of smartphones in Mainland China.[29] Entry into the smartphone market was paired with a change of
strategy from "the one-size-fits-all" to a diverse portfolio of devices. [30] These changes were driven by
the popularity of Apple's iPhone and Lenovo's desire to increase its market share in mainland China.
Lenovo passed Apple to become the No. 2 provider of smartphones to the Chinese market in 2012.
[30]
However, due to there being about 100 smartphone brands sold in China, this second only
equated to a 10.4% market share.[30]
In May 2012, Lenovo announced an investment of US$793 million in the construction of a mobile
phone manufacturing and R&D facility in Wuhan, China.[31]
NEC[edit]
On January 27, 2011, Lenovo formed a joint venture to produce personal computers with Japanese
electronics firm NEC. The companies said in a statement that they will establish a new company
called Lenovo NEC Holdings B.V., which will be registered in the Netherlands. NEC will receive
US$175 million from Lenovo through the issuance of Lenovo's shares. Lenovo will own a 51% stake
in the joint venture, while NEC will hold a 49% stake. Lenovo has a five-year option to expand its
stake in the joint venture.[32]
This joint venture is intended to boost Lenovo's worldwide sales by expanding its presence in Japan,
a key market for personal computers. NEC has spun off its personal computer business into the joint
venture. As of 2010, NEC controlled about 20% of Japan's market for personal computers while
Lenovo had a 5% share. Lenovo and NEC have also agreed to explore cooperating in other areas
such as servers and tablet computers.[33]

Roderick Lappin, chairman of the Lenovo-NEC joint venture, told the press that the two companies
will expand their co-operation to include the joint development of tablet computers. [34]
In April 2014 Lenovo purchased a portfolio of patents from NEC related to mobile technology. These
include over 3,800 patent families in countries around the world. The purchase includes standard
essential patents for 3G and LTE cellular technologies and other patents related to smartphones and
tablets.[35]
Medion[edit]
In June 2011, Lenovo announced that it planned to acquire control of Medion, a German electronics
manufacturing company. Lenovo said the acquisition would double its share of the German
computer market, making it the third-largest vendor by sales (after Acer and Hewlett-Packard). The
deal, which closed in the third quarter of the same year, was the first in which a Chinese company
acquired a well-known German company.[36]
This acquisition will give Lenovo 14% of the German computer market. Gerd Brachmann, chairman
of Medion, agreed to sell two-thirds of his 60 percent stake in the company. He will be paid in cash
for 80 percent of the shares and will receive 20 percent in Lenovo stock. That would give him about
one percent of Lenovo.[36]
CCE[edit]
In September 2012, Lenovo agreed to acquire the Brazil-based electronics company Digibras, which
sells products under the brand-name CCE, for a base price of 300 million reals (US$148 million) in a
combination of stock and cash and an additional 400 million reals dependent upon performance
benchmarks.[37][38] Prior to its acquisition of CCE, Lenovo already established a $30 million factory in
Brazil, but Lenovo's management had felt that they needed a local partner to maximize regional
growth. Lenovo cited their desire to take advantage of increased sales due to the 2014 World Cup
that would be hosted by Brazil and the 2016 Summer Olympics and CCE's reputation for quality.
[39]
Following the acquisition, Lenovo announced that its subsequent acquisitions would be
concentrated in the areas of software and IT services.[40]
Stoneware[edit]
In September 2012, Lenovo agreed to acquire the United States-based software company
Stoneware, in its first software acquisition. The transaction was expected to close by the end of
2012; no financial details have been disclosed.[41][42] Lenovo said that the company was acquired in
order to gain access to new technology and that Stoneware is not expected to significantly affect
earnings. More specifically, Stoneware was acquired to further Lenovo's efforts to improve and
expand its cloud-computing services. For the two years prior to its acquisition, Stoneware partnered
with Lenovo to sell its software. During this period Stoneware's sales doubled. Stoneware was
founded in 2000. As of September 2012, Stoneware is based in Carmel, Indiana and has 67
employees.[43][44]
LenovoEMC[edit]

The signing ceremony for the LenovoEMC joint venture

Main article: LenovoEMC

Lenovo and EMC formed LenovoEMC as a joint venture to offer network attached storage (NAS)
solutions. LenovoEMC's products were formerly offered under the Iomega brand name. After the
formation of LenovoEMC, Iomega ceased to exist as business unit. LenovoEMC's products are
designed for small and medium-sized that do not have the budgets for enterprise-class data storage.
LenovoEMC is part of a broader partnership between the two companies announced in August 2012.
[45]
This partnership also includes an effort to develop x86-based servers and allowing Lenovo to act
as an OEM for some EMC hardware. Lenovo is expected to benefit from the relatively high profit
margins of the NAS market. LenovoEMC is part of Lenovo's Enterprise Products Group. [46][47]
Motorola Mobility[edit]
On 29 January 2014, Google announced it would sell Motorola Mobility to Lenovo for US$2.91 billion
in a cash-and-stock deal. When Google and Lenovo first announced the acquisition of Motorola, they
said the purchase would be funded with $660 million in cash, $750 million in Lenovo stock, and a
$1.5 billion promissory note due in three years. As of February 2014, Google owns about 5.94% of
Lenovo's stock. The deal includes smartphone lines like the Moto X and Moto G and the Droid
Turbo. Lenovo also got the future Motorola Mobility product roadmap. Google will retain the
Advanced Technologies & Projects unit and all but 2,000 of the company's patents. [48] Lenovo will
receive royalty free licenses to all the patents retained by Google.[49]
Yang Yuanqing stated that "the acquisition of such an iconic brand, innovative product portfolio and
incredibly talented global team will immediately make Lenovo a strong global competitor in
smartphones."[50][51][52] Yang also said, Dont be scared by the $1 billion-a-year loss. We will improve
that even from day one. Google is very good at software, ecosystems and services. But we are
stronger in the manufacturing of devices. Yang said that Lenovo would make Motorola profitable
within six quarters.[48]
Lenovo has stated that Motorola was purchased in large part due to its long-standing relationships
with cellular network operators in the United States and the United Kingdom. Lenovo previously had
difficulty breaking into the United Kingdom due to the high proportion of customers who sign
contracts and receive phones from carriers. A Lenovo executive said, There are lots of reasons why
we bought Motorola but primarily because it has a history of distribution in the UK. Motorola has long
and established relationships with routes to market in North America and the UK, where people are
tied to their network operator."[53]
Lenovo received approval from the European Union for its acquisition of Motorola in June 2014. In a
statement the European Union said, ""The Commission concluded that the proposed acquisition
would not raise competition concerns in relation to smart mobile devices (smartphones and tablets),
given the limited market position of the parties and the presence of other strong suppliers in the
market." At the time of the EU approval Lenovo said it was on track to win final approval of the
merger in the United States.[54]
The acquisition was completed on 30 October 2014. Motorola Mobility will remain headquartered in
Chicago, and continue to use the Motorola brand, but Liu Junpresident of Lenovo's mobile device
business, became the company's chairman.[8][55]
Nok Nok Labs[edit]
Lenovo invested in Nok Nok Labs, a firm dedicated to improving computer security by eliminating the
use of passwords in favor of voice recognition, fingerprint scanning, and other technologies. Lenovo
has at least one seat on Nok Nok's board. Both Nok Nok and Lenovo were founding members of
the FIDO (Fast IDentity Online) Alliance, a group of over 100 companies including Google, Microsoft
and PayPal that wants to create a new cyber security ecosystem. The companies behind the
initiative aim to stop users from creating easily guessed passwords, often used for multiple sites, that
make it easy for hackers to steal information and seize control of social media accounts. The most
common passwords are still "123456" and "password".[56]

Superfish incident[edit]
Lenovo pre-installed malware on some consumer laptops that silently broke HTTPS, a technology
widely used to secure web browsing. The software, created by Superfish, was designed to introduce
advertisements into Google search results in a deal that made Lenovo between US$200,000 to
US$250,000.[57] According to Lenovo, the California-basedSuperfish company "instantly analyzes
images on the web and presents identical and similar product offers that may have lower prices."
Privacy advocates have expressed concerns that this software is intercepting traffic that is encrypted
in what is known as a "man-in-the-middle attack" in order to display ads. [58] The US Department of
Homeland Security also recommended the program to be removed from all PCs because it made
users vulnerable to what are known as SSL spoofing techniques that can enable remote attackers
to read encrypted web traffic, steal credentials and perform other attacks. [59]
Chief Executive of Superfish responded to security concerns saying, the vulnerability was
inadvertently introduced by Israel-based Komodia, which built the application. [59]
After acknowledging a consumer backlash, a Lenovo spokesperson stated that "User feedback was
not positive" while further stating that it would discontinue preloading the software and would
program its servers to disable this feature.[60] In addition, Lenovo announced in an official blog post
that they would offer customers with infected computers a free six-month subscription to
Intels McAfee LiveSafe security software and promised a 6-month extension for existing
users[61] while advising all consumers to uninstall the Superfish program. [59] The company also stated
that by the time it launches its Windows 10 products, its standard software installation will include
only the operating system, security and Lenovo applications, as well as programs necessary for
unique hardware (such as 3D cameras).[61]
A California resident, Jessica Bennett, filed a lawsuit against Lenovo. Bennett claimed the malware
injected smut images into her Yoga laptop.[62]

Products and services[edit]

Personal and business computing[edit]
Lenovo's PC division was formed in 2005 through its acquisition of IBM's PC business, including its
ThinkPad and ThinkCenter lines. Shipments of Think-branded computers have doubled since
Lenovo's takeover of the brand, with operating margins thought to be above 5%. [63] Lenovo has
aggressively expanded the ThinkPad brand away from traditional laptop computers in favor of
tablets and hybrid devices such as the ThinkPad Tablet 2, ThinkPad Yoga, ThinkPad 8, ThinkPad
Helix, and ThinkPad Twist; the shift came as a response to the growing popularity of mobile devices,
and the release of Windows 8 in October 2012. Lenovo has achieved significant success with this
high-value strategy and it now controls more than 40% of the market for Windows computers priced
above $900 in the United States.[64]
ThinkPad[edit]
Main article: ThinkPad

A Lenovo ThinkPad X1 Ultrabook

ThinkPad is a line of business-oriented laptop computers known for their boxy black design,
modeled after a traditional Japaneselunchbox.[65] ThinkPads were originally an IBM product; they
have been manufactured and sold by Lenovo since early 2005, following its acquisition of
IBM's personal computer division. The ThinkPad has been used in space and is the only laptop
certified for use on theInternational Space Station.[66]
ThinkCentre[edit]
Main article: ThinkCentre
ThinkCentre is a line of business-oriented Desktop computers which was introduced in 2003 by IBM
and since has been produced and sold by Lenovo since 2005. [67] ThinkCentre computers typically
include mid-range to high-end processors, options for discrete graphics cards, and multi-monitor
support.[68][68]
ThinkServer[edit]
Main article: ThinkServer
The ThinkServer product line began with the TS100 from Lenovo.[69] The server was developed under
agreement with IBM, by which Lenovo would produce single-socket and dual-socket servers based
on IBMs xSeries technology.[69] An additional feature of the server design was a support package
aimed at small businesses.[69] The focus of this support package was to provide small businesses
with software tools to ease the process of server management and reduce dependence on IT
support.[70]
ThinkStation[edit]
Main article: ThinkStation
The ThinkStation products from Lenovo are workstations designed for high-end computing. In 2008,
Lenovo expanded the focus of its THINK brand to include workstations, with the ThinkStation S10
being the first model released.
ThinkVision displays[edit]
High-end computer displays are marketed under the ThinkVision name. ThinkVision displays share a
common design language with other THINK devices such as the ThinkPadline of notebook
computers and ThinkCentre desktops.
At the 2014 International CES, Lenovo announced the ThinkVision Pro2840m, a 28-inch 4K display
aimed at professionals selling for $799 in the United States. Lenovo also announced another 28-inch
4K touch-enabled device running Android that can function as an all-in-one PC or an external display
for other devices; It will sell for $1,199 in the United States. Both will be available in mid-2014. [71]
IdeaPad[edit]
Main article: IdeaPad

A model with a Lenovo IdeaPad at a launch party in Japan.

The IdeaPad line of consumer-oriented laptop computers was introduced in January 2008. The
IdeaPad is the result of Lenovo's own research and development; Unlike the ThinkPad line of
notebooks, its design and branding were not inherited from IBM. The IdeaPad line's design language
differs markedly from the ThinkPad and has a more consumer-focused look and feel. [72][73]
In October 2012 the firm launched the IdeaPad Yoga 13, a laptop running Microsoft Corp's Windows
8 that can be converted to a tablet PC by flipping the screen all the way backwards. [74] Lenovo has
subsequently released the IdeaPad Yoga 11 running Windows RT and announced the IdeaPad Yoga
11S running Windows 8. Lenovo's Yoga products reflect the company's commitment to the "PC plus
era" where innovative products allow Lenovo to resist commodity pricing of PCs.
In November 2013, Lenovo introduced the Lenovo Yoga 2 Pro, an Ultrabook-class convertible device
that can be used as both a tablet and laptop computer. The Yoga 2 Pro is thinner than the Yoga
13 and has tapered edges giving it an appearance more like a conventional ultrabook laptop vs the
earlier model's pleasing "book-like" symmetrical design. At 1.39 kilograms, the Yoga 2 Pro is
significantly lighter than the Yoga 13. The Yoga 2 Pro has a subtle rubber trim around the edge of its
top half in order to prevent slipping on hard surfaces when in tent mode. The new design is easier to
pick up and hold than Lenovo's previous generation of Yoga devices. The Yoga 2 Pro comes with a
backlit keyboard. Unlike earlier Yoga products, the home button is now a touch-key on the bottom
center of the display. Lenovo moved the power button away from the front and to the side in order to
prevent accidental key presses.[75][76]
In October 2014, Lenovo introduced the Yoga 3 Pro, an ultra-thin Broadwell-based 13.3-inch
touchscreen laptop with a hinge that allows for use as a tablet and other configurations. It uses Intel
Core M processors and comes standard with solid-state drives. Its screen has 3200 pixel by 1800
pixel resolution and is multitouch capable.[77] It is 13 millimeters thick.[78] The Yoga 3 Pro's hinge differs
significantly from the Yoga 2 Pro. The new all-metal hinge is referred to by Lenovo as a "watchband."
It is much less bulky and forms a continuous curved shape from the chassis of the laptop to the
bottom of the screen. It has six mounting points as opposed to two for a more solid feel and
structural strength.[79]
IdeaCentre[edit]
Main article: IdeaCentre

A Lenovo IdeaCentre all-in-one PC

All IdeaCentres are all-in-one machines, combining processor and monitor into a single unit. [80] The
desktops were described by HotHardware as being "uniquely designed". [80] The
first IdeaCentre desktop, the IdeaCentre K210, was announced by Lenovo on June 30, 2008.
[81]
While IdeaCentre was designed to be purely desktop models, influences of the IdeaPad line were
observed.[81] One such feature was Veriface facial recognition technology.[81]
At CES 2011, Lenovo announced the launch of four IdeaCentre desktops: the A320, B520, B320,
and C205.[80] In the autumn of 2012, the firm introduced the more powerful IdeaCentre A720, with a
27-inch touchscreen display and running Windows 8.[82] With a TV tuner and HDMI in, the A720 can
also serve as a multimedia hub or home theater PC.[83]
In 2013 Lenovo added a table computer to the IdeaCentre line. The Lenovo IdeaCentre Horizon
Table PC, introduced at the 2013International CES is a 27-inch tablet computer designed for
simultaneous use by multiple people. Thanks to its use of Windows 8 the Horizon can also serve as
desktop computer when set upright.[84]

Smartphones[edit]
Main article: Lenovo smartphones

The ThinkPad Tablet 2 from front and back.

Lenovo launched the LePhone in China in order to compete against other smart phones. These
same phones are marketed as IdeaPhones outside of China
As of January 2013, Lenovo only manufactures phones that use the Android operating system
from Google. Numerous press reports indicated that Lenovo planned to release a phone
running Windows Phone 8, According to JD Howard, a vice president at Lenovo's mobile division,
the company would release a Windows Phone product if there is market demand. [85]
Lenovo has implemented an aggressive strategy to replace Samsung Electronics as Mainland China
market's top smartphone vendor. It has spent $793.5 million in Wuhan in order to build a plant that
can produce 30 to 40 million phones per year. Data from Analysys International shows that Lenovo
experienced considerable growth in smartphone sales in China during 2012. Specifically, it saw its
market share increase to 14.2% during 2012's third quarter, representing an increase when
compared to 4.8% in the same quarter of 2011. IDC analysts said that Lenovo's success is due to its
"aggressive ramping-up and improvements in channel partnerships." Analysys International analyst
Wang Ying wrote, "Lenovo possesses an obvious advantage over rivals in terms of sales channels."
The company's CEO, Yang Yuanqing, said, "Lenovo does not want to be the second player ... we
want to be the best. Lenovo has the confidence to outperform Samsung and Apple, at least in the
Chinese market."[86]
According to IHS iSuppli, Lenovo was a top-three smartphone maker in China with a 16.5% market
share in the first quarter of 2012. According to a May report released by IDC Lenovo ranks fourth in
the global tablet market by volume.[87] As of November 2012, Lenovo was the second largest seller of
mobile phones in China when measured by volume. [29]

In May 2013, Lenovo CEO Yang Yuanqing indicated that the company had aimed to release
smartphones in the United States within the next year. Later in October, Lenovo expressed interest
in acquiring the Canadian smartphone maker BlackBerry Ltd. However, its attempt was reportedly
blocked by the Government of Canada, citing security concerns due to the use of BlackBerry
devices by prominent members of the government. An official stated that "we have been pretty
consistent that the message is Canada is open to foreign investment and investment from China in
particular but not at the cost of compromising national security". [51][88]
In January 2014, Lenovo announced a proposed deal to acquire Motorola Mobility to bolster its plans
for the U.S. market.[50] Microsoft officially announced that Lenovo became the hardware partner
of Windows Phone platform at the Mobile World Congress 2014.[89]

Tablets[edit]
In April 2014, Lenovo announced the new Lenovo Tab A7-30, Lenovo Tab A7-50, Lenovo Tab A8 and
Lenovo Tab A10 tablets.[90]
On October 9, 2014, Lenovo unveiled 6 new Yoga tablets with Android and Windows OS, ranging
from 8-inch, to 10.1-inch and 13.3-inch in size.

Smart televisions[edit]

A Lenovo A30 TV set top box

Main article: Lenovo LeTV

In November 2011, Lenovo said it would soon unveil a smart television product called LeTV,
expected for release in the first quarter of 2012. "The PC, communications and TV industries are
currently undergoing a smart transformation. In the future, users will have many smart devices and
will desire an integrated experience of hardware, software and cloud services." Liu Jun, president of
Lenovo's mobile-Internet and digital-home-business division.[91] In June 2013 Lenovo announced a
partnership with Sharp to produce smart televisions. In March 2014, Lenovo announced that it
projected smart television sales surpassing one million units for 2014. The same month Lenovo
released its flagship S9 featuring the fastest CPU of any smart television. [92]

Wearables[edit]

The Lenovo Smartwatch on display at the 2015 Mobile World Congress

Rumors that Lenovo was developing a wearable device were confirmed in October 2014 after the
company submitted a regulatory finding to the Federal Communications Commission. The device,
branded a "Smartband," has a battery life of seven days. It has an optical heart-rate monitor and can
be used to track distance and time spent running and calories burned. It can also notify the user of
incoming calls and texts.[93] It can also unlock computers without the use of a password. The
Smartband went on sale in October 2014. Lenovo started offering the device for sale on its website
without a formal product announcement.[94]

DOit apps[edit]
REACHit[edit]
REACHit is a storage management application. It is designed to help users access, organize, and
search files across multiple devices and operating systems. It connects Windows personal
computers, Android devices, and iOS devices and works with Google Drive, OneDrive,Dropbox, and
Box. On Windows devices, REACHit is integrated with Windows File Explorer. Lenovo began
bundling REACHit with all its computers in early 2015.[95]
SHAREit[edit]
SHAREit is a free application from Lenovo that allows Windows, Windows Phone, Androaid, and iOS
devices to transfer files directly by through ad-hoc Wi-Fi connections.[96]

Operations[edit]
Lenovo's principal facilities are in Beijing, Morrisville, North Carolina and Singapore, with research
centers in those locations, as well as Shanghai, Shenzhen, Xiamen, andChengdu in China,
and Yamato in Kanagawa Prefecture, Japan.[97] Lenovo operates factories
in Chengdu and Hefei in China, Japan, and as of December 2011 has plans to start production
in Argentina. A 700-square-metre (7,500 sq ft) flagship store opened in Beijing in February 2013.[30]

The Lenovo R&D centre inShenzhen, China

Lenovo's manufacturing operations are a departure from the usual industry practice of outsourcing to
contract manufacturers. Lenovo instead focuses on vertical integration in order to avoid excessive
reliance on original equipment manufacturers and to keep down costs.[98] Speaking on this topic,
Yang Yuanqing said, "Selling PCs is like selling fresh fruit. The speed of innovation is very fast, so
you must know how to keep up with the pace, control inventory, to match supply with demand and
handle very fast turnover." Lenovo benefited from its vertical integration after flooding affected harddrive manufacturers in Thailand in 2011, as the company could continue manufacturing operations
by shifting production towards products for which hard drives were still available. [99][100]
Lenovo began to emphasize vertical integration after a meeting in 2009 in which CEO Yang
Yuanqing, and the head of Lenovo's supply chain, analyzed the costs versus the benefits of in-house
manufacturing, and decided to make at least 50% of Lenovo's manufacturing in-house. Lenovo Chief
Technology Officer George He said that vertical integration is having an important role in product

development. He stated, "If you look at the industry trends, most innovations for" PCs, smartphones,
tablets and smart TVs are related to innovation of key componentsdisplay, battery and storage.
Differentiation of key parts is so important. So we started investing more...and working very closely
with key parts suppliers."[100] Previously, lack of integration due to numerous foreign acquisitions and
an excessive number of "key performance indicators" (KPIs) was making Lenovo's expansion
expensive and creating unacceptably slow delivery times to end-customers. Lenovo responded by
reducing the number of KPIs from 150 to 5, offering intensive training to managers, and working to
create a global Lenovo culture. Lenovo also doubled-down on vertical integration and manufacturing
near target markets in order to cut costs at time when its competitors were making increased use of
outsourcing off-shoring. By 2013, Lenovo ranked 20th on Gartner's list of top 50 supply chains,
whereas in 2010 the company was unranked.[13]
In 2012, Lenovo partially moved production of its ThinkPad line of computers to Japan. ThinkPads
will be produced by NEC in Yamagata Prefecture. Akaemi Watanabe, president of Lenovo Japan,
said, "As a Japanese, I am glad to see the return to domestic production and the goal is to realize
full-scale production as this will improve our image and make the products more acceptable to
Japanese customers.[100][101]
In October 2012, Lenovo announced that it would start assembling computers in Whitsett, North
Carolina. Production of desktop and laptop computers, including the ThinkPad Helix began in
January 2013. As of July 2013, 115 workers were employed at this facility. Lenovo has been in
Whitsett since 2008, where it also has centers for logistics, customer service, and return processing.
[102][103]

In May 2014, Lenovo announced that it planned to double its workforce in most countries. [104]
In 2015, Lenovo and Hong Kong Cyberport Management Company Limited, an innovation digital
community, reached a deal to jointly build a cloud service and product research and development
center.[105] According to the agreement, Lenovo and Cyberport will cooperate in various sectors,
including science and technology development and innovation; talent training and employment; local
cloud computing; big data; and Internet industry development. [106] Additionally, Lenovos Asia Pacific
data center will be housed in Cyperport. [107]

Corporate affairs[edit]
The company executive headquarters are in Morrisville, North Carolina,[108][109] near Raleigh in
the Research Triangle metropolitan area,[110] in the United States.[111] As of October 2012, the facility
has about 2,000 employees.[112] Lenovo identifies its facilities in Morrisville, Beijing, and Singapore as
its "key location addresses,"[113] where its principal operations occur.[108] The company stated that "by
foregoing a traditional headquarters model and focusing on centers of excellence around the world,
Lenovo makes the maximum use of its resources to create the best products in the most efficient
and effective way possible."[114] The company registered office is on the 23rd floor of the Lincoln
House building of the TaiKoo Place in Quarry Bay, Hong Kong.[115]
Previously the company's U.S. headquarters were in Purchase, Harrison, New York. About 70
people worked there. In 2006, Lenovo announced that it was consolidating its U.S. headquarters, a
logistics facility in Boulder, Colorado, and a call center in Atlanta, Georgia to a new facility in
Morrisville. The company received offers of over $11 million in incentive funds from the local
Morrisville, NC area and from the State of North Carolina on the condition that the company employs
about 2,200 people.[116] If the company failed to employ that amount, it would not acquire the
incentives.[117]

Financials and market share[edit]

Lenovo is the dominant supplier of computers in mainland China and became the world's secondlargest supplier of personal computers during the third quarter of 2011. Lenovo held around 13.5% of
the worldwide computer market as of October 2011. The company's expansion was boosted in part

by a joint venture with NEC in Japan and aggressive marketing to both professionals and
consumers. Yang Yuanqing said that Lenovo would continue its expansion by focusing on
technological convergence in the areas of smart phones, tablets, personal computers, and "smart
TV." "We must deliver a great user experience across all platforms to achieve our goal and become
the leading personal technology company in the world," he said.
In the second quarter of 2011, Lenovo was the world's third-largest vendor of personal computers.
[118]
For the year ending with third quarter 2010, its market share increased from 8.6 percent to 10.4
percent.[119] The company is the largest seller of PCs in China, with a 28.6% share of the China
market, according to research firm IDC in July 2009. It reported annual sales of $14.9 billion for the
fiscal year ending 2008/2009 (ending March 31, 2009).
During the first quarter of 2011, Lenovo held 31.7% of the personal computer market in China when
measured by units sold. Lenovo reported a 98.3 percent rise in profit to $108.8 million during the first
quarter of 2011, up from $54.86 million during the same quarter of the previous year. Lenovo
shipped 10.28 million personal computers in the first quarter of 2011. Lenovo reported a 54-percent
rise in profit for the third quarter of 2011, beating analyst predictions, in spite of slow sales growth
and a shortage of hard drives.[120]
From March 4, 2013 Lenovo was included as a constituent stock in the Hang Seng Index. Lenovo
replaced the unprofitable Aluminum Corp of China, a state-owned enterprise, on the list of 50 key
companies on the Hong Kong stock exchange that constitute the Hang Seng Index. The inclusion of
Lenovo and Tencent, China's largest internet firm, significantly increased the weight of the
technology sector on the index. Being added to the Hang Seng Index was a significant boon for
Lenovo and its shareholders as it widened the pool of investors willing to purchase Lenovo's stock.
For instance, index funds pegged to the Hang Seng and pension funds that consider index inclusion
now have the opportunity to invest in Lenovo.[121] On November 2013 it was reported that Lenovo
achieved double digit market share in the United States for the first time. [122]

Ownership[edit]
As of October 1, 2011, 58% of Lenovo stock was held by the general public, 34% by Legend
Holdings Limited, and 8% by other entities. The Chinese Academy of Sciences owns 36% of Legend
Holdings.[123]
On September 4, 2009, Oceanwide Holdings Group, a private investment firm based in Beijing,
bought 29% of Legend Holdings, the parent company of Lenovo, for 2.76 billion yuan. [124]
Responding to claims that Lenovo is a state owned enterprise CEO Yang Yuanqing said: "Our
company is a 100% market oriented company. Some people have said we are a state owned
enterprise. It's 100% not true. In 1984 the Chinese Academy of Sciences only invested $25,000 in
our company. The purpose of the Chinese Academy of Sciences to invest in this company was that
they wanted to commercialize their research results. The Chinese Academy of Sciences is a pure
research entity in China, owned by the government. From this point, you could say we're different
from state-owned enterprises. Secondly, after this investment, this company is run totally by the
founders and management team. The government has never been involved in our daily operation, in
important decisions, strategic direction, nomination of the CEO and top executives and financial
management. Everything is done by our management team." [125]
In early 2006, the U.S. State Department was harshly criticized for purchasing 16,000 computers
from Lenovo. Critics attempted to smear Lenovo as controlled by the Chinese government and a
potential vehicle for espionage against the United States. Yang spoke out forcefully and publicly to
defend Lenovo. He said, " We are not a government-controlled company." He pointed out that
Lenovo pioneered China's transition to a market economy and that in the early 1990s had fought and
beaten four state owned enterprises that dominated the Chinese computer market. Those firms had
the full backing of the state while Lenovo received no special treatment. The State Department deal
went through. Yang worried that fears about Lenovo's supposed connections to the Chinese

government would be an ongoing issue in the United States. Yang worked to ease worries by
communicating directly with Congress. In June 2006, Yang arranged to be seated next to C. Richard
D'Amato, a member of the congressional committee that had earlier raised concerns about the
security of Lenovo's products. D'Amato later stated that he was impressed with Yang's candor.
Yang dramatically increased his ownership stake in by acquiring 797 million shares in 2011. As of
June 2011, Yang owned an 8 percent stake in Lenovo. He previously owned only 70 million shares.
In a statement, Yang said, "While the transaction is a personal financial matter, I want to be very
clear that my decision to make this investment is based on my strong belief in the company's very
bright future. Our culture is built on commitment and ownership we do what we say, and we own
what we do. My decision to increase my holdings represents my steadfast belief in these
principles."[126]

Corporate culture[edit]
Lenovo's corporate culture differs significantly from most large Chinese companies. While Lenovo
was founded using seed capital from the state-owned Chinese Academy of Sciences, Lenovo is run
as a private enterprise with little or no interference by the state. Lenovo's senior executives,
including many non-Chinese, rotate between two head offices, one in Beijing and the other in
Morrisville, North Carolina, and Lenovo's research and development center in Japan. Two
Westerners have served as Lenovo's CEO.[63]
English is Lenovo's official language. Lenovo's CEO, Yang Yuanqing, initially did not understand
English well, but relocated his family to Morrisville in order to improve his language skills and soak
up American culture. One American Lenovo executive interviewed by The Economist praised Yang
for his efforts to make Lenovo a friendly place for foreigners to work. He said that Yang had created
a "performance culture" in place of the traditional Chinese work style of "waiting to see what the
emperor wants."[63]
When Yang took over Lenovo's personal computer division, he strongly discouraged the use of
formal titles and required staff to address each other by their given names. Yang even required
managers to stand outside their offices each morning to greet their employees while carrying signs
with their first names. When Yang's division moved to a new building in 1997, he used the move to
break Lenovo's cultural links to the past by insisting on a more formal dress code and training all
employees in telephone etiquette; Yang wanted his people to think and act like high-tech workers in
developed markets.

Leadership[edit]
Yang Yuanqing[edit]
Main article: Yang Yuanqing

Yang Yuanqing, Lenovo's Chairman and CEO

Yang Yuanqing is the chairman and chief executive officer of Lenovo. One of his major
achievements was leading Lenovo to become the best-selling personal computer brand in China
since 1997. In 2001, Business Week named him one of Asia's rising stars in business.[127]Yang was
president and CEO of Lenovo until 2004, when Lenovo closed its acquisition of IBM's PC division,
afterward Yang was succeeded as Lenovo CEO by IBM's Stephen M. Ward, Jr. Ward was
succeeded by Bill Amelio on December 20, 2005. On February 2009, Yang replaced Amelio as CEO
and has served in that capacity ever since. Yang was chairman of Lenovo's board from 2004 to
2008, and returned as chairman in 2012 alongside his role as CEO.
In 2012, Yang received a $3 million bonus as a reward for record profits, which he in-turn
redistributed to about 10,000 of Lenovo's employees. According to Lenovo spokesman, Jeffrey
Shafer, Yang felt that it would be the right thing to, redirect [the money] to the employees as a real
tangible gesture for what they done. Shafer also said that Yang, who owns about eight percent of
Lenovo's stock, "felt that he was rewarded well simply as the owner of the company. [128] The bonuses
were mostly distributed among staff working in positions such as production and reception who
received an average of 2,000 yuan or about US$314. This was almost equivalent to a monthly salary
of an average worker in China.[129] Yang made a similar gift of $3.25 million again in 2013.[130]
According to Lenovo's annual report, Yang earned $14 million, including $5.2 million in bonuses,
during the fiscal year that ended in March 2012.[131]
In 2013, Barron's named Yang one of the "World's Best CEOs."[132]
Liu Chuanzhi[edit]
Main article: Liu Chuanzhi
Liu Chuanzhi is the founder and chairman of Lenovo. Liu was trained as an engineer at a military
college and later went on to work at the Chinese Academy of Sciences. Like many young people
during the Cultural Revolution, Liu was denounced and sent to the countryside where he worked as
a laborer on a rice farm.
Liu claims Hewlett-Packard as a key source of inspiration. In an interview with The Economist he
stated that "Our earliest and best teacher was Hewlett-Packard." For more than ten years, Lenovo
was Hewlett-Packard's distributor in China.[133] In reference to Lenovo's later acquisition of IBM's
personal computer unit Liu said, "I remember the first time I took part in a meeting of IBM agents. I
was wearing an old business suit of my father's and I sat in the back row. Even in my dreams, I
never imagined that one day we could buy the IBM PC business. It was unthinkable. Impossible." [11]
Board of directors[edit]
In early 2013, Lenovo announced the addition of Yahoo founder Jerry Yang to its board. Lenovo's
CEO Yang Yuanqing said, "Jerrys appointment as an observer to our board furthers Lenovos
reputation as a transparent international company." Just prior to the appointment of Jerry
Yang, Tudor Brown the founder of British semiconductor design firmARM, was also appointed to
Lenovo's board. Speaking of both men Yang Yuanqing said, "We believe that they will add a great
deal to our strategic thinking, long-term direction and, ultimately, our ability to achieve our aspirations
in the PC plus era."

Marketing and sponsorships[edit]

Emerging markets[edit]
In 2009 Lenovo became the first personal computer manufacturer to divide countries into emerging
markets, such as China, India, and Brazil, and mature markets, such as the United States, Japan,
and Europe. Lenovo then developed a different set of strategies for each category. This approach
has now been widely adopted among Lenovo's competitors.[16]

In 2012, Lenovo made a major effort to expand its market share in developing economies such as
Brazil and India through acquisitions and increased budgets for marketing and advertising. While
Lenovo has not revealed its total spending on marketing, it did increase marketing and advertising
expenditures by $248 million in the fiscal year ending in 2012.[63]
China[edit]

A Lenovo Store in China

In China, Lenovo has a vast distribution network designed to make sure that there is at least one
shop selling Lenovo computers within 50 kilometers of nearly all consumers. Lenovo has also
developed close relationships with its Chinese distributors, who are granted exclusive territories and
only carry Lenovo products.[63]
As of July 2013, Lenovo believes that urbanization initiatives being pushed by Premier Li
Keqiang will allow it to sustain sales growth in mainland China for the foreseeable future. Speaking
of Lenovos prospects on the mainland at its annual general meeting in Hong Kong in 2013, Yang
Yuanqing said: I believe urbanisation will help us further increase the overall [domestic] PC market.
Yang also stressed the opportunity presented by the China's relatively low penetration rate of
personal computers. Lenovo previously benefited from the Chinese governments rural subsidy, part
of a wider economic stimulus initiative, designed to increase purchases of appliances and
electronics. That program of subsidies, which Lenovo joined in 2004, ended in 2011. Lenovo enjoys
consistent price premiums over its traditional competitors in rural markets and a stronger local sales
and service presence.[134]
India[edit]
Lenovo has gained significant market share in India through bulk orders to large companies and
government agencies. For example, the government of Tamil Nadu ordered a million laptops from
Lenovo in 2012 and single-handedly made the firm a market leader. Lenovo distributes most of the
personal computers it sells in India through five national distributors such as Ingram Micro and
Redington.[135]
Given that most smartphones and tablets are sold to individuals Lenovo is pursuing a different
strategy making use of many small state-centric distributors. Amar Babu, Lenovo's managing
director for India, said, "To reach out to small towns and the hinterland, we have tied up with 40
regional distributors. We want our regional distributors to be exclusive to us. We will, in turn, ensure
they have exclusive rights to distribute Lenovo products in their catchment area." [135] As of 2013,
Lenovo had about 6,000 retailers selling smartphones and tablets in India. In February 2013, Lenovo
established a relationship with Reliance Communications to sell smartphones. The smartphones
carried by Reliance have dual-SIM capability and support both GSM and CDMA. Babu claims that
the relative under-penetration of smartphones in India represents an opportunity for Lenovo. [135]

Lenovo has assembled a team of senior managers familiar with the Indian market, launched mobile
phones at all price points there, and worked on branding and marketing in order to build market
share. As of February 2014, Lenovo claims that its sales of smartphones in India have been
increasing 100% per quarter while the market is only growing 15-20% over the same period. Lenovo
did marketing tests of its smartphones in November 2012 in Gujarat and some southern cities,
where Lenovo already had a strong presence. Lenovo's strategy has been create awareness,
maintain a broad selection of phones at all price points, and developing distribution networks.
Lenovo partnered with two national distributors and over 100 local distributors. As of February 2014,
more than 7,000 retail outlets in India sold Lenovo smartphones. Lenovo has also partnered with
HCL in order to set up 250 service centres in 110 cities.[136]
In India, where Lenovo is relatively unknown, Lenovo grants distributors exclusive territories, but
allows them to sell computers from other companies. Lenovo uses its close relationships with
distributors to gain market intelligence and speed up product development.
Lenovo reported a year-on-year increase of about 951% in tablet sales in India for the first quarter of
2014. Canalys, a market research firm, said Lenovo took market share away from Apple and
Samsung in the country.[104]
Africa[edit]
Lenovo first started doing business in South Africa, establishing a sales office, and then expanded to
East African markets such as Kenya, Tanzania, Ethiopia, Uganda and Rwanda. West Africa followed
when Lenovo invested in a Nigerian legal office and then continued to invest across Ghana,
Zimbabwe, Mozambique and Botswana.
According to Lenovos general manager for Africa, Graham Braum, Lenovos strategy for African
investment is to put great emphasis on products that sell well in Africa and roll out products
alongside different African governments' rolling out of wireless technology. Products such as the
Lenovo Yoga family (including the series four different modes: laptop, tablet, tent, or stand) are
particularly valued in Africa because of their long battery life as many areas have limited power
supply. Other popular products include the Lenovo notebook which was introduced in 2008. [137]
Lenovo specifically picked Nigeria in 2013 to release its smartphone because unlike South Africa
and other African countries, there is no requirement to partner with a local telecom firm to sell its
phones.[138]
In the long term, according to Braum, Lenovo in Africa will focus on continuing to consistently supply
personal computer products and allow this market to grow, while moving into new territory such as
mobile and enterprise.[137]

United States[edit]
In the United States, Lenovo began the "For Those Who Do" marketing campaign in 2010, created
by the ad agency Saatchi & Saatchi. The campaign was Lenovo's first to go global, with the
exception of its domestic market in China, where it retained its existing "Imagine" (lian xiang) slogan.
The campaign did not reach China because "do" carries connotations of physical work in the country,
an image that Lenovo did not want attached to their brand.[139] "For Those Who Do" was designed to
appeal to young consumers in the 18-to 25-year-old demographic by stressing its utility to creative
individuals that Lenovo's advertising refers to as "doers". [140]

Ashton Kutcher[edit]
Main article: Ashton Kutcher
In October 2013 Lenovo announced that it had hired Ashton Kutcher as a product engineer and
spokesman. Kutcher announced Lenovo's Yoga Tablet at a media event the same month; He flew to
China to meet with Lenovo executives shortly after. David Roman, Lenovo's chief marketing officer,
said, "His partnership goes beyond traditional bounds by deeply integrating him into our organization

as a product engineer. Ashton will help us break new ground by challenging assumptions, bringing
new perspective and contributing his technical expertise to Yoga Tablet and other devices." Kutcher
co-founded A-Grade Investments, an investor in Airbnb, Foursquare, Spotify, Path, Uber and other
technology firms. Kutcher studied biochemical engineering at the University of Iowa.[141]

Kobe Bryant[edit]
Main article: Kobe Bryant
Kobe Bryant appeared in ads aired in China and other Asian countries for the K900 smartphone in
2013.[142]

Olympics[edit]

The 2008 Summer Olympics Torch, which was designed by Lenovo

Lenovo was an official computer sponsor of the 2006 Winter Olympics in Turin, Italy, and the 2008
Summer Olympics in Beijing. When asked about Lenovo's brand Yang Yuanqing said, "The Beijing
Olympics were very good for brand awareness in countries like the US and Argentina, but not good
enough."[143]

YouTube Space Lab[edit]

Main article: YouTube Space Lab
On December 2011, Lenovo announced the YouTube Space Lab contest in conjunction
with YouTube, NASA, the European Space Agency, andJAXA, allowing students between the ages
of 14 and 18 the chance to devise experiments to be performed by astronauts on the International
Space Station. The global winners received a trip to Japan or Russia in addition to having their
experiment results live-streamed from space.[144]

NFL[edit]
In July 2012, Lenovo and the National Football League (NFL) announced that Lenovo had become
the NFL's "Official Laptop, Desktop and Workstation Sponsor." Lenovo said that this was its largest
sponsorship deal ever in the United States. Lenovo will receive advertising space in NFL venues and
events and be allowed to use the NFL logo on its products and ads. Lenovo said that this
sponsorship would boost its efforts to market to the key 18-to-35-year-old male demographic.
The NFL has been a Lenovo customer since 2007 and the sponsorship resulted from that
relationship. NFL stars Jerry Rice, DeAngelo Williams, and Torry Holt were on hand for the
announcement and a celebration with 1,500 Lenovo employees. Lenovo's sponsorship will last at
least three years.[145]

The Pursuit[edit]

Lenovo used a short-film entitled The Pursuit in its "For Those Who Do" campaign launched in 2011.
The film depicted a mysterious young woman using the IdeaPad Yoga 13 to stay one-step-ahead of
her evil pursuers. The film was shot by Martin Campbell, who previously worked on action movies
and James Bond films such as GoldenEye and the remake of Casino Royale. Lenovo was the first
Chinese company to make use of such marketing techniques.[13]