Lenovo Group Ltd.OTCPK - Current
Thu, Nov. 3, 4:46 AM
Thu, Sep. 1, 4:29 AM
- Calling it the Yoga Book, Lenovo (OTCPK:LNVGY) has launched a new Android tablet with a touch keyboard in a battle to find growth in a declining market.
- It's about the size and shape of a hardcover children's book, and even does some tricks, like letting users write with real ink and have it all digitized.
- Development on the product started nearly three years ago in a brainstorm aimed at millenials.
Thu, May 26, 4:31 AM
- Lenovo Group ADR (OTCPK:LNVGY): FQ4 EPS of $1.62
- Revenue of $9.13B (-19.4% Y/Y)
Fri, Mar. 18, 10:57 AM
- As part of a broad restructuring, Rick Osterloh is stepping down as head of Lenovo's (OTCPK:LNVGY) Motorola Mobility unit. Osterloh was Motorola's chief since April 2014 (prior to Lenovo's October 2014 acquisition of Motorola from Google).
- The Motorola teams previously reporting to Osterloh will now report to Aymar de Lencquesaing, one of the newly-appointed co-presidents (along with fellow Lenovo exec Xudong Chen) of Lenovo's Mobile Business Group (MBG). IDC estimates Lenovo proper and Motorola shipped 74M smartphones in 2015, good for a 5.2% global share (#4 behind Samsung, Apple, and Huawei).
- Lenovo is also restructuring its PC Group into a PC & Smart Device Business Group responsible for "delivering PCs, detatchables, tablets, phablets, gaming and smart home products across Windows, Chrome and Android based products."
- The Enterprise Business Group, which includes IBM's former x86 server unit, will now be known as the Data Center Group (DCG), with DCG president Gerry Smith now reporting to Lenovo CEO Yang Yuanqiang. And Lenovo's Ecosystem and Cloud Services Group has been turned into the Lenovo Capital and Incubator Group that will focus on "developing new, innovative technologies through Lenovo spinoffs or investments in standalone startups, while continuing to develop Lenovo’s overall cloud and big data platform."
Wed, Mar. 2, 4:58 AM
- IBM plans to sell up to $150M worth of shares in China's Lenovo (OTCPK:LNVGY), according to Reuters, which cited a term sheet of the deal sent to investors.
- IBM will offer 182M shares in an indicative range of HK$6.26-HK$6.42 each, equivalent to a discount of up to 6.4% to Lenovo's closing price on Wednesday.
- Goldman Sachs was hired as sole bookrunner for the deal.
Nov. 12, 2015, 11:39 AM
- Lenovo (OTCPK:LNVGY) rose 5.8% in Hong Kong after reporting FQ2 revenue of $12.2B, up 16% Y/Y (23% exc. forex) thanks to the Motorola Mobility acquisition (closed in Oct. 2014) and beating an $11.8B consensus. Shares were down 29% YTD going into earnings.
- The company officially posted a $714M net loss (slightly below an $803M consensus), but had pre-tax income of $166M after backing out $599M in restructuring costs, a $324M smartphone inventory charge, and $85M in various non-cash charges.
- A weak PC market led PC division sales to drop 5% Y/Y to $8.1B, with division op. income falling 17% to $406M. Enterprise sales rose 5.5x to $1.2B thanks to the acquisition of IBM's x86 server unit, which contributed $900M.
- Mobile sales rose 104% to $2.7B thanks to the Motorola deal. Motorola had revenue of $1.4B, down from $1.69B a year ago as part of Google. The entire mobile division had an op. loss of $217M. Thanks in part to Motorola, 70% of FQ1/FQ2 shipments came from outside of China, up from 19% a year earlier.
- Chinese sales totaled $3.3B (now just 28% of total revenue), Asia-Pac $2B, EMEA $3.2B, and the Americas (significantly boosted by M&A) $3.7B. Chinese mobile sales were pressured by "hyper competition, carrier subsidy cuts and continued shift to the online model." India (revenue +99% Y/Y) was a strong point. "Our first priority is to grow in the rest of the emerging markets," says CEO Yang Yuanqing.
Oct. 8, 2015, 5:23 PM
- IDC estimates global PC shipments fell 10.8% Y/Y in Q3 to nearly 71M units, a drop nearly as large as Q2's 11.8% and above a 9.2% projection. Gartner estimates shipments fell 7.7% to 73.7M.
- IDC: "Across many regions, the channel remained focused on clearing Windows 8 inventory before a more complete portfolio of models incorporating Windows 10 (NASDAQ:MSFT) and Intel (NASDAQ:INTC) Skylake processors comes on the scene ... Though easing a bit, currency devaluation continued to inhibit PC shipments in the third quarter. While Windows 10 has generally received favorable reviews and raised consumer interest in PCs, many users opted to upgrade existing PCs rather than purchase new hardware."
- Nonetheless, IDC is "optimistic" about a demand pickup. "While PC shipments will be hampered in the short run by the availability of a free upgrade to Windows 10, the improved PC experience across user segments should drive longer-term demand for new PC hardware..."
- Likewise, Gartner expects "more stable market conditions" in 2016. It's also pleased the U.S. notebook and "premium ultramobile" segments saw positive growth. Various analysts have reported seeing signs of stabilizing PC demand.
- With tablet sales also under pressure, tablet cannibalization is less of an issue than before. The ability of older PCs to handle mainstream computing tasks without trouble (including on Windows 10) may be a bigger problem. Many in the industry are hoping 4K video and/or virtual reality will fuel upgrades.
- The market's four biggest players all grabbed share from smaller firms with less scale. IDC estimates market leader Lenovo's (OTCPK:LNVGY) unit share rose 130 bps Y/Y to 21%, #2 HP's (NYSE:HPQ) 110 bps to 19.6%, and #3 Dell's 120 bps 14.3%.
- Apple (NASDAQ:AAPL), aided by 1H15 MacBook refreshes, came in at #4 with a 7.5% share, up 60 bps (revenue share is likely closer to 15%). A 4K 21.5" iMac is reportedly launching next week.
- Acer (OTC:ASIYF) rounded out the top-5 with a 7% share, down 150 bps. Everyone else collectively fell 270 bps to 30.6%.
- Related tickers: AMD, NVDA, STX, WDC, HTCH
Sep. 2, 2015, 7:22 PM
- Ahead of the IFA electronics show (runs from Sep. 4-9 in Berlin), Sony (NYSE:SNE) has launched its Xperia Z5 phone line. The flagship model, the 5.5" Z5 Premium, is the first phone to sport a 4K display (overkill?). The standard Z5 has a 5.2" 1080p display, and the Z5 Compact a mere 4.6" 720p display.
- Sony, looking to stand out in a very competitive high-end Android market, is also emphasizing the phones' cameras: They have 23MP resolutions, 24mm lenses, F2.0 apertures (good for low-light shots), and a "ground-breaking" auto-focus speed of 0.03 seconds. They run on Qualcomm's Snapdragon 810 processor.
- Huawei, trying to make greater high-end inroads, has launched the Mate S, a 5.5" phone with a 1080p display, metal body, and 13MP camera with optical image stabilization. It will retail for a steep €650 ($728).
- Lenovo (OTCPK:LNVGY) is going off the beaten path. The company has launched the Phab and Phab Plus, two near-7" devices whose size arguably makes them tablets more than smartphones. Also launched: The Vibe P1, a phone with a 5" 1080p screen and massive 5,000mAh battery; the Vibe P1m, which has a 5.5" 720p screen, and a relatively modest 4,000mAh battery; and the Vibe S1, which has two front cameras to enable selfie shots with depth effects.
- Meanwhile, Lenovo's Motorola Mobility unit has refreshed its Moto 360 smartwatch lineup. 42mm and 46mm men's versions are offered, along with a 42mm women's version. The watches sell for $300-$430.
Jul. 9, 2015, 10:02 PM
- IDC estimates global PC shipments tumbled to 66.1M in Q2, falling at a sharper Y/Y clip than Q1's 6.7% and about 1% faster than expected. Gartner is slightly less harsh, estimating shipments fell 9.5% to 68.4M.
- Factors blamed for the decline: Inventory reductions ahead of the Windows 10 launch (set for July 29), a strong dollar (has led to higher overseas prices), and tough Y/Y comps caused by the 2014 boost in business PC sales caused by the end of Windows XP support. With tablet sales under pressure as well, tablet cannibalization is less of a factor than before ... but rising smartphone/tablet usage still appears to be taking a toll on PC upgrade rates.
- Gartner sees full-year shipments falling 4.4%. IDC still expects low-to-mid single-digit declines in 2H15, before volumes stabilize in future years. It sees the Windows 10 launch going "relatively well," but cautions Microsoft's (NASDAQ:MSFT) decision to provide free upgrades to Windows 7/8 users will limit its impact on PC sales.
- Continuing a recent trend, market leaders grabbed share from smaller rivals. IDC estimates #1 Lenovo's (OTCPK:LNVGY) share rose to 20.3% from 19.4% a year ago, #2 HP's (NYSE:HPQ) to 18.5% from 18.2%, and #3 Dell's to 14.5% from 14%. Acer (OTC:ASIYF) and Asus (OTC:AKCPF) are respectively given 6.6% and 6.5% shares
- Curiously, IDC has Apple (NASDAQ:AAPL) ranked #4 globally, with its share rising to 7.8% from 5.9% via 5.1M Mac shipments (could imply a 15%+ revenue share), but Gartner doesn't have the company in its top-5. IDC and Gartner respectively assign Apple 13.5% and 12.7% U.S. shares. In the past, IDC's Mac shipment estimates have been notably different from the quarterly figures Apple would later report.
- Near-term expectations for PC sales are already quite low, following Intel's (NASDAQ:INTC) Q1 warning, AMD's Q2 warning, Micron's (NASDAQ:MU) June 25 results/guidance, and plenty of other negative news. Intel's Q2 report arrives on July 15.
- Other PC industry names: NVDA, STX, WDC, HTCH
Jun. 2, 2015, 7:27 AM
- The head of Lenovo's (OTCPK:LNVGY) mobile business is stepping down less than a year after the Chinese technology giant bought Motorola Mobility to boost its smartphone offerings.
- Liu Jun will be replaced by Chen Xudong, the head of ShenQi, a sub-division that sells mobile devices.
- Lenovo did not offer a reason for Liu's exit but said he would become a special consultant to Chief Executive Yang Yuanqing.
May 11, 2015, 2:17 PM
- After growing 19.1% Y/Y in Q4 (and seeing stronger growth earlier in 2014), Chinese smartphone shipments fell 4.3% in Q1 to 98.8M units, per IDC. Higher penetration rates, carrier subsidy cuts, and an inventory buildup near the end of 2014 contributed to the drop.
- IDC: "China is oftentimes thought of as an emerging market but the reality is that the vast majority of phones sold in China today are smartphones ... convincing existing users as well as feature phone users to upgrade to new smartphones will now be the key to further growth in the China market."
- Analysts have already noted Chinese smartphone demand has softened. Demand is expected to improve in 2H15, as inventories are cleared and 4G phone sales continue growing. IDC expects "relatively flat" growth for the whole of 2015.
- With strong pent-up demand for larger iPhones providing a lift, IDC estimates Apple's (AAPL -0.9%) share rose to 14.7% (#1 overall) from 12.3% in Q4 and 8.7% a year ago, via 14.5M shipments (+62% Y/Y). Revenue share was likely well over 30%, given sub-$150 Android phones account for a large portion of local sales. Apple, for its part, has reported its Greater China revenue (iPhone or otherwise) rose 71% Y/Y in Q1 to $16.8B (29% of total revenue).
- Xiaomi continues growing rapidly: IDC estimates its share rose to 13.7% (#2) from 9.2% a year ago. Fellow local Android OEM Huawei saw its share rise to 11.4% (#3) from 7.8%. Samsung (OTC:SSNLF), however, saw its share fall to 9.7% from 19.9% ahead of the Galaxy S6 launch. Lenovo/Motorola's (OTCPK:LNVGY) share fell to 8.3% (#5) from 10.3%. Everyone else had 42.2% of the market.
Apr. 29, 2015, 6:21 PM
- The WSJ reports AAC Technologies, one of the two suppliers of the Apple Watch's (NASDAQ:AAPL) taptic engine (enables its haptic feedback features) was making defective components, and thus slowed down the ramping of Watch production. No recall is planned, since Apple doesn't believe Watches with the defective part shipped to consumers.
- Apple has reportedly responded by moving nearly all of its taptic engine production to Japan's Nidec, which didn't encounter the same issue. However, the WSJ states "it may take time" for Nidec to up production, and that Apple told some Watch suppliers last week to "slow production until June."
- The report comes as shipping times for many Watch models remain lengthy; a survey from research firm Slice indicated only 22% of U.S. Watch orders were delivered during the first weekend (376K out of 1.7M).
- In its FQ2 10-Q, Apple discloses the European Commission "could require Ireland to recover from the Company past taxes covering a period of up to 10 years," and that such tax payments could be "material." The EC has long been probing the use of Irish legal structures by Apple and other U.S. multinationals to lower their local tax bills; the FT reported last year Apple could receive a fine of up to several billions of euros.
- IDC estimates Apple's 61.2M calendar Q1 iPhone sales were good for an 18.2% global smartphone unit share, up from 15.2% a year ago; revenue share is likely above 40%. Samsung (OTC:SSNLF) had an estimated 24.5% unit share (82.4M shipments), down from 30.7% a year ago. #3 Lenovo (OTCPK:LNVGY) fell to 5.6% from 6.6% after factoring the Motorola Mobility deal.
- Overall, IDC thinks smartphone shipments rose 16.7% Y/Y to 336.5M. The total mobile phone market was roughly flat at 458.9M units.
Apr. 9, 2015, 6:03 PM
- As Intel's (NASDAQ:INTC) March 12 warning led many to expect, PC sales were weak in Q1: IDC estimates shipments fell 6.7% Y/Y to 68.5M, a much sharper drop than Q4's 2.4% and Q3/Q2's 1.7%. Gartner estimates shipments fell 5.2% to 71.7M. With IDC also reporting of price pressure, revenue declines might be larger.
- IDC: [T]he Q1 market faced multiple headwinds – including inventory build-up of Windows Bing based notebooks, commercial slow down following the [Windows] XP refresh and constrained demand in many regions due to currency fluctuations and unfavorable economic indicators." Gartner thinks sales of "mobile PCs" (notebooks, convertibles, and Windows tablets) rose, while desktop sales fell sharply. "PC replacements will be driven by thin and light notebooks with tablet functionality."
- Both Gartner and IDC report U.S. PC shipments fell only ~1% Y/Y. On the other hand, IDC thinks Japan (another high-ASP market) saw shipments fall 44%; strong Q1 2014 spending prior to a tax hike made for tough comps.
- Market leaders Lenovo (OTCPK:LNVGY) and HP (NYSE:HPQ) continued taking share from firms with less scale: IDC estimates Lenovo's share rose to 19.6% from 17.6% a year ago (3.4% unit growth), and HP's to 19% from 17.1% (3.3% unit growth).
- #3 Dell's share rose to 13.5% from 13.4%; #4 Asus (OTC:ASUUY) was flat at 7.1%, and #5 Acer (OTC:ASIYF) rose to 7% from 6.3%. Everyone else collectively fell to 33.9% from 38.4%.
- Unlike in Q4 and Q3 (seasonally stronger quarters for the company), Apple (NASDAQ:AAPL) wasn't in the global top-5. IDC estimates the company's US. unit share rose to 10.9% from 10.6%, good for fourth place (revenue share is higher).
- Other PC industry names: MSFT, AMD, NVDA, MU, STX, WDC, HTCH
Mar. 30, 2015, 6:28 PM
- Thanks in large part to the low-cost Moto G (now Brazil's top-selling smartphone), Lenovo's (OTCPK:LNVGY) Motorola Mobility unit has doubled its Brazilian smartphone share to 18% (per IDC), a figure that trails only Samsung's 43%.
- Google originally launched the Moto G with a 4.5" display and a $179 unsubsidized price in 2013. A second-gen model contains a 5" display and a similar price, though it goes for $260 in Brazil due to taxes/tariffs. A second-gen version of the cheaper Moto E (4.5" display) will sell for $120 in the U.S., and $200 in Brazil.
- Motorola's Brazilian success highlights the one-time mobile giant's success at improving its fortunes by focusing on cheap Android phones that are a cut above many comparably-priced products in terms of design/build quality. IDC estimates Lenovo (aided by Motorola) had a 6.6% global Q4 smartphone unit share on the back of 24.7M shipments. Motorola's shipments rose 118% over the whole of 2014.
Mar. 7, 2015, 3:26 PM
- With Intel's (NASDAQ:INTC) Grantley Xeon CPU launch and Web data center investments offsetting weak high-end server demand, IDC estimates global server revenue rose 1.9% Y/Y in Q4 to $14.5B, and Gartner estimates it rose 2.2% to $14B; those figures compares with Q3 growth estimates of 4.8% and 1.7%, respectively.
- Likewise, IDC estimates global enterprise storage revenue rose 7.2% Y/Y in Q4, aided by Web investments and healthy demand for mid-range systems featuring integrated flash. Q3 growth was pegged at 5.1%.
- IBM had a rough time its both the server and storage markets: IDC believes its storage share fell to 9% (tied for #3) from 12.7% a year earlier, and Gartner estimates its server revenue fell 14% if one excludes Big Blue's x86 server unit, which was just sold to Lenovo. After accounting for the x86 sale, IDC estimates IBM's server share was at 13.7% (#3) vs. 26.8% a year ago.
- HP (NYSE:HPQ) fared a little better: IDC has its server share falling fractionally to 26.8% (still #1 overall), and its storage share falling to 13.8% (#2) from 14.1%. The company's x86 server unit has been gaining ground against IBM's former business, but its high-end server sales remain weak.
- Cisco's (NASDAQ:CSCO) UCS server line (recently refreshed) continues to gain ground: Its share rose to 5.3% (#5) from 4.5%, with full-year revenue pegged at $2.9B. With the help of aggressive pricing and x86 growth, Dell's server share rose to 16.7% (#2) from 15.2%, while its storage share slipped to 9% (tied for #3) from 9.2%. Lenovo (OTCPK:LNVGY) claimed a 7.6% server share (#4) thanks to the IBM deal, kicking Oracle (NYSE:ORCL) out of the top-5 along the way.
- EMC, whose high-end storage sales have been pressured (mid-range/flash demand has been better), saw its storage share drop to 22.2% (still #1) from 23.1%. NetApp (NASDAQ:NTAP), which posted an FQ3 miss and light guidance last month amid tough mid-range competition from EMC and others, saw its share drop to 7.2% (#5) from 8%.
- Not surprisingly, the white-label hardware beloved by Google, Facebook, Amazon, etc. continued to take share. IDC estimates such hardware, referred to as ODM Direct, claimed server and storage shares of 8.2% and 12.8% vs. 6.4% and 9.9% a year ago.
- Sales of x86 servers, the lion's share of which run on Intel CPUs, rose 7.1% to $11.5B. Sales of non-x86 servers fell 14% to $3B, thanks to declining demand for both mainframes and UNIX servers running proprietary RISC CPUs. "Early-stage revenue" was seen for ARM (NASDAQ:ARMH) servers, largely via HP's Moonshot line.
- Other companies with strong server and/or storage exposure: STX, WDC, SMCI, MLNX, AVGO, QLGC, RHT
Mar. 5, 2015, 7:49 PM
- The WSJ reports Google's (NASDAQ:GOOG) U.S. mobile phone service will initially feature just one phone - the mammoth Nexus 6 phablet, originally designed by Google and made by Lenovo's (OTCPK:LNVGY) Motorola Mobility unit. iPhone fans are out of luck, as are those who prefer more modestly-sized Android hardware.
- The paper adds the service might launch by month's end. As previously rumored, it will rely on Sprint (NYSE:S) and T-Mobile's (NYSE:TMUS) networks, along with Wi-Fi hotspots.
- For those curious, the Nexus 6 has a 6" quad-HD (2560x1440) OLED display, a 13MP rear camera with optical image stabilization, 4K video recording support, and a large f/2.0 aperture, and Qualcomm's (NASDAQ:QCOM) high-end Snapdragon 805 processor (quad-core, 2.7GHz.). Naturally, it runs on an unmodified version of Android 5.0 (Lollipop).
- The report suggests Google will try to avoid ruffling the feathers of its U.S. carrier partners by limiting the amount of hardware supported by its phone service ... and that it will have it act as a showcase for what it thinks mobile services should be like (as suggested by Sundar Pichai) by offering the services through its favorite devices.
- Separately, Google has launched its long-rumored U.S. car insurance shopping site in California (more states will come later). Google asserts the site, known as Google Compare, can provide price quotes for various providers in "as little as 5 minutes."
- A U.K. version of Google Compare has been running for two years. Like rival car insurance shopping sites, Google will get a referral fee on sales; major insurers such as MetLife and Mercury Insurance are on board.