Lenovo Group Ltd. ADROTCPK - Current
Lenovo Looking To Have The Last Seat When The Music Stops
Stephen Simpson, CFA • 10 Comments
Stephen Simpson, CFA • 10 Comments
Lenovo Facing Headwinds, But Managing Them Well
Stephen Simpson, CFA
Stephen Simpson, CFA
Mon, Nov. 28, 4:38 PM
- Launching November 30.
- Availability – Android devices and tablets, iPhone, iPad and Apple TV, Amazon Fire and Fire TV Stick, Chromecast (Android on launch, iOS 2017), Internet Explorer, Chrome and Safari browsers, Google Cast-enabled LeEco ecotvs and VIZIO SmartCast Displays. Roku and other device compatibility planned for 2017.
- Packages – Live a Little ($35/month, 60+ channels), Just Right ($50/month, 80+ channels), Go Big ($60/month, 80+ channels) [launch promotion for $35/month], Gotta Have It ($70/month, 120+ channels)
- HBO and Cinemax add-ons available at $5/month.
- Promotions noted in collaboration with Apple (NASDAQ:AAPL) [Apple TV included with any package prepaid for 3 months], Amazon (NASDAQ:AMZN) [Fire TV Stick with Alexa Voice Remote included with any package prepaid for 1 month], LeEco [service included for variable timeframes with purchase of certain smartphones and TVs] and Lenovo (OTCPK:LNVGY) [1 month service included with purchase of laptops with Intel Core i3, i5 or i7 processors].
- AT&T (NYSE:T) shares are unmoved (+0.03%) in extended trading at $39.55.
- Launch event live-stream
- DirecTV Now
Thu, Nov. 3, 4:46 AM
Mon, Oct. 17, 3:40 PM
- Nimble Storage (NMBL -1.4%) to power Lenovo's (OTCPK:LNVGY) flash-based storage and converged infrastructure solutions. Predictive analytics and focus on data center scale and efficiencies further highlighted.
- The initial result of the partnerhsip, Lenovo's ThinkAgile CX converged infrastructure systems powered by Nimble's Predictive All Flash arrays, will go live on October 28.
- Previously: Flash-based storage competition dense amid increased data-center implementation
Fri, Sep. 23, 3:22 PM
- The companies, Lenovo (OTCPK:LNVGY -0.7%), (INTC -0.7%), (PYPL -0.8%) and (SYNA -1.5%) are collaborating to bring FIDO-enabled biometric authentication to Lenovo laptops.
- A goal of moving beyond passwords to reduce fraud and heighten security is noted.
- Intel's 7th generation processors, Synaptics' sensors and PayPal's payment ecosystem will merge to offer built-in hardware security just as Yahoo's substantial security breach refocuses attention on the importance of digital defense.
- Press release
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.
Fri, Aug. 12, 5:09 PM
- AMD (NASDAQ:AMD) has announced its FreeSync technology is used in Lenovo's (OTCPK:LNVGY) new Y27f Curved Gaming Monitor to provide a "low input latency and an ultra-smooth, stutter free gaming and multimedia experience."
- FreeSync is designed to adapt refresh rates seamlessly with a GPU's generation of new frames and avert tearing issues.
- The monitor is available now for $399.
Thu, Jun. 9, 12:47 PM
- Q1 Worldwide Business smartphone shipments of 92.2M units fell 21% Q/Q, and increased 0.5% Y/Y according to Strategy Analytics.
- Worldwide Business tablet shipments of 17.3M units fell 34.5% Q/Q, and 9.8% Y/Y.
- Weak global demand, slowing economy and higher inventory hampered the growth of both BYOD and corporate-liable markets.
- "Longer life cycles, increased competition from other categories such as larger smartphones/phablets, combined with the fact that end users can install the latest operating systems on their older tablets has stifled enthusiasm for these devices in both BYOD and corporate-liable environments. In addition, Q4 2015 registered a strong quarter for business tablets, hence a soft first quarter of the year is not unusual," said Andrew Brown, ED of Enterprise Research at Strategy Analytics.
Thu, Jun. 9, 8:56 AM
- Global PC shipments this year are expected to fall 7.3%, according to IDC, roughly 200 basis points worse than the group's previous forecast. This cut comes after Q1 shipments fell 12.5% Y/Y vs. the anticipated 11.3% decline.
- "The latest update reflects continuing pressure on PC shipments, but does not significantly change the factors driving the market," says IDC's Loren Loverde, adding that with an unprecedented four straight quarters of double-digit volume declines, the bar has been lowered for some improvement going forward.
- Tickers of interest: INTC, MSFT, OTCPK:LNVGY, NVDA, AMD, MU, STX, WDC
Thu, May 26, 4:31 AM
- Lenovo Group ADR (OTCPK:LNVGY): FQ4 EPS of $1.62
- Revenue of $9.13B (-19.4% Y/Y)
Tue, Apr. 12, 2:09 AM
- According to research firm Gartner, global shipments of personal computers fell 9.6% to 64.8M units during Q1, marking the sixth consecutive quarter of declines and the first time since 2007 that shipments dropped below 65M units (IDC reported similar results worldwide).
- In the U.S., PC shipments totaled 13.1M units, representing a 6.6% decline from a year earlier and the lowest volume in three years.
- The sector has faced headwinds in recent quarters which include an economic slowdown in China, the strong U.S. dollar and the growing popularity of smartphones.
- Related stocks: OTC:ASIYF, AMD, HPQ, INTC, OTCPK:LNVGY, MSFT, MU, NVDA, SNE, STX, OTCPK:TOSYY, WDC
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. 9, 1:54 PM
- Looking to better compete against common rivals such as Cisco, HP, and Dell, Juniper (JNPR +1.5%) and Lenovo (OTCPK:LNVGY) have struck a global reseller deal and product-integration partnership encompassing each company's data center hardware lineups.
- Some of the elements of the deal: 1) Companies will be able to buy Juniper's networking hardware from Lenovo, which bought IBM's x86 server unit in 2014. 2) Juniper and Lenovo plan to develop "simplified" data center management and orchestration tools using the latter's Network Director and Contrail SDN software, and the former's xClarity management software. 3) The companies plan to develop "go-to-market plans and a tailor-made resell model to address unique localization requirements in China."
- The deal is also said to cover hyper-converged (integrated server/storage/networking) and hyper-scale data center hardware - EMC, Cisco, HP, Dell, and Oracle are all going after the hyper-converged market, while many Internet companies (as well as some enterprises) have embraced hyper-scale data center architectures.
- Juniper's enterprise revenue rose 8% Y/Y in Q4 to $386.4M, and accounted for 29% of its total revenue. News of the Lenovo deal comes a week after Cisco (NASDAQ:CSCO) unveiled a refresh for its Nexus data center switch line, as well as new switch ASICs (referred to as Cloud Scale) said to deliver unmatched performance and latency.
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.
Wed, Feb. 3, 5:58 AM
- Lenovo Group ADR (OTCPK:LNVGY): FQ3 EPS of $0.027
- Revenue of $12.91B (-8.4% Y/Y)
Tue, Jan. 12, 5:56 PM
- IDC estimates global PC shipments fell 10.6% Y/Y in Q4 to 71.9M, just a slightly smaller drop than Q3's 10.8%. Gartner is once more a little less downbeat, estimating shipments fell 8.3% to 75.7M.
- For the whole of 2015, IDC estimates shipments fell 10.4% to 276.2M. The firm notes adding detachable tablets to its count would respectively provide ~6% and ~3% boosts to Q4 and 2015 growth rates.
- The Q4 figures suggest Windows 10 (available as a free upgrade to Windows 7/8 users) and Intel's (NASDAQ:INTC) Skylake CPU launch provided only a modest sales lift. IDC: "The PC market continued to face persistent challenges [in 2015] from longer-PC lifecycles and competition from mobile phones and tablets, despite the slowing growth in those markets. However, economic issues like falling commodity prices and weak international currencies, as well as social disruptions in EMEA and Asia/Pacific that disrupted foreign markets were a larger factor for 2015."
- IDC VP Loren Loverde still thinks PC replacement rates will pick up in 2016. "Commercial adoption of Windows 10 (NASDAQ:MSFT) is expected to accelerate, and consumer buying should also stabilize by the second half of the year. Most PC users have delayed an upgrade, but can only maintain this for so long before facing security and performance issues." Counting detachable tablets, IDC expects 1%-2% 2016 growth. Gartner forecasts a 1% decline.
- Lenovo (OTCPK:LNVGY) remained the PC market's top player: IDC estimates Lenovo's shipment share rose 140 bps Y/Y in Q4 to 21.4%. #2 HP's (NYSE:HPQ) share rose 10 bps to 19.9%. #3 Dell's rose 70 bps to 14.1%.
- Apple (NASDAQ:AAPL) and Asus (OTC:AKCPF) were tied at #4 with 7.9% shares - Apple's share rose 110 bps, and Asus' 90 bps. Apple's revenue share could be closer to 15%. Non-top 5 vendors, hurt by their relative lack of scale, collectively saw their shipment share drop 420 bps to 28.7%
- Related tickers: NVDA, AMD, MU, STX, WDC
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.