Thursday, May 23, 5:18 AMLenovo (LNVGY.PK): FQ4 net profit of $127M beats by $20M. FQ4 revenue of $7.83B (+4% Y/Y) misses by $140M. Full year net profit of $635.15M beats by $16.91M. Full year Revenue of $33.87B (+15% Y/Y).
Wednesday, May 1, 5:53 PM
Talks between IBM and Lenovo (LNVGY.PK) regarding the sale of IBM's x86 server business have broken down, sources tell Fortune. Lenovo reportedly balked over IBM's asking price - according to one CRN source, it was around $5B-$6B - for the business, which had an estimated $4.9B in 2012 sales and saw a 9% Y/Y revenue drop in Q1. Regardless of the specific price, Lenovo (current market cap of $10.4B) would have a tough time digesting the unit. (prior reports: I, II)
2 Comments[Tech, M&A]
Friday, April 19, 6:17 PM
With demand for Windows 8 touch systems coming up short, it looks as if Intel (INTC) is betting big on Android: Digitimes reports Lenovo (LNVGY.PK) will launch an 11" Intel-based Android notebook/tablet convertible for its Yoga line in May, and that H-P, Toshiba, Acer, and Asus will follow with similar hardware in Q3. CNET follows up by reporting Intel has design wins for ~$200 Android tablets - Intel is also shooting for that price point for Win. 8 tablets. One major challenge for Android convertibles: most Android apps haven't been written with keyboard/mouse use in mind.
Thursday, April 18, 1:53 PM
IBM (IBM -0.8%) is in "active negotiations" to sell its x86 server business, and Lenovo (LNVGY.PK) is the frontrunner to buy it, "multiple sources" tell CRN. An industry exec claims IBM wants $5B-$6B, and likes the idea of selling to PC division buyer Lenovo, since it doesn't compete much with IBM elsewhere. A purchase of that size wouldn't be easy for Lenovo, give its market cap is only $8.6B. IBM, which reports after the close, saw its x86 sales fall 2% Y/Y in Q4, as white-label sales to Internet firms account for a growing share of industry revenue. Also: trade union reps claim IBM is thinking of cutting 1.2K-1.4K jobs in France over the next 2 years.
2 Comments[Tech, M&A]
Friday, April 12, 1:38 PM
Though Lenovo (LNVGY.PK) hasn't been unscathed by plunging PC sales, it's definitely faring better than H-P (HPQ) and Dell (DELL). Whereas IDC estimates H-P and Dell's global Q1 PC shipments respectively fell 24% and 11% Y/Y, it thinks Lenovo's shipments were roughly flat at 11.7M, as a 210 bps share gain offset a 14.9% industry shipment drop. The reasons for Lenovo's success: a strong focus on emerging markets, a willingness to sacrifice margins to gain share, and an ability to cut costs by vertically integrating some component production and assembly work.
Thursday, April 11, 8:24 AM
In addition to the fall in Microsoft's shares, companies exposed to the PC market drop further after IDC said yesterday that global computer shipments slid 13.9% in Q1. H-P HPQ -5.2%, Lenovo (LNVGY.PK) -5.8% in Hong Kong, Intel (INTC) -2.3%, AMD -2.7%, Nvidia (NVDA) -2.1%, Seagate (STX) -1.85%, Western Digital (WDC) -1.3%. (previous)
6 Comments[Tech, On the Move, Consumer]
Wednesday, April 10, 4:43 PM
Global PC shipments fell 13.9% Y/Y in Q1 to 76.9M units, per IDC. That surpasses Q4's 6.4% drop and Q3's 8.6% decline, and is steep even in light of IDC's recent commentary. IDC: "It seems clear that the Windows 8 (MSFT) launch not only didn’t provide a positive boost to the PC market, but appears to have slowed the market." H-P (HPQ) was the market's leader, but its share fell 200 bps Y/Y to 15.7%. #2 Lenovo (LNVGY.PK) saw its share rise 210 bps to 15.3%, and #3 Dell's rose 40 bps to 11.8%. Apple's (AAPL) U.S. share rose 60 bps to 10%, though U.S. Mac shipments fell 7.5% to 1.4M.
Tuesday, March 12, 2:21 PM
Lenovo (LNVGY.PK) can't afford to buy BlackBerry (BBRY -4%) even if it wanted to, argues Pac Crest's James Faucette, trying to cool off fresh speculation on the subject. BlackBerry's current market cap of $7.4B isn't far removed from Lenovo's $11.2B, he notes. Moreover, Lenovo has only $4.1B in cash, and the company would have to hold onto $2.4B of it to maintain its traditional minimum cash-to-sales ratio of 7%.
Monday, March 11, 11:26 AM
More on BlackBerry: Lenovo buyout speculation has picked up again thanks to remarks made by Lenovo (LNVGY.PK) CEO Yang Yuanqing to a French paper. "As for BlackBerry, the [acquisition] could possibly make sense. But first I have to analyze the market well and understand what is the exact weight of this company." CFO Wong Dai suggested in January his company is open to buying BlackBerry (BBRY +9.1%), but Lenovo later downplayed those remarks.
Tuesday, March 5, 1:53 PM
PC industry forecasts continue to head lower: IDC sees industry shipments falling 1.3% this year to 345.8M. That's below a prior forecast for a 2.8% increase, and a 2013, and comes in the wake of a 3.7% drop in 2012. Shipments to "mature markets" are seen falling 4%, while emerging market are expected to eke out 0.6% growth - that mix shift benefits Lenovo (LNVGY.PK) and Asus, and hurts H-P (HPQ) and Dell (DELL). For the record, IDC expects tablet shipments to hit 172.4M in 2013.
Tuesday, January 29, 12:30 PM
RIM (RIMM -6.3%) is falling hard again ahead of tomorrow's BB10 event, where the Z10 and X10 are expected to be unveiled. Critical comments from UBS and CLSA could be playing a role - the former declares BB10 price points too high for emerging markets, and thinks iOS and Android have a stranglehold elsewhere. On the flip side, OTR Global thinks a Lenovo partnership could be announced soon; Lenovo recently declared comments about a possible RIM bid to be taken out of context. The WSJ has taken a look at the challenges RIM faces in winning back corporate clients.
16 Comments[Tech, On the Move]
Friday, January 11, 11:27 AM
Global PC shipments, Windows 8 hardware and all, fell 6.4% Y/Y to 89.8M in Q4, according to IDC. That's slightly better than Q3's 8.6% drop, but worse than a forecast for a 4.4% decline. The decline might have been larger if inventory replenishment didn't lead U.S. shipments to fall a relatively modest 4.5%. IDC still considers H-P (HPQ -2.1%) the world's top vendor, and estimates its share rose 90 bps Y/Y to 16.8%. But #3 Dell's (DELL -1.6%) share fell 190 bps to 10.6%. Apple's U.S. share rose 50 bps to 11.4%. AMD -1.9%. STX -1.3%.
Thursday, January 10, 7:12 PM
Having become the world's top PC vendor (per Gartner), Lenovo (LNVGY.PK) now wants to challenge Dell (DELL), H-P (HPQ), and even high-end king Apple in the U.S. consumer PC space. Lenovo, feared for its willingness to use aggressive pricing, is counting on innovative designs and its popular ThinkPad corporate PCs to aid its cause. The company worked hard to establish itself as a PC trendsetter at CES, via products such as its IdeaPad Yoga 11s, ThinkPad Helix, and (most notably) 27" table PC.
Wednesday, January 9, 6:17 PM
Intel (INTC) roundup: 1) After Ars Technica raised the issue, Intel admits its new Ivy Bridge CPUs have a max power draw of 13W rather than 7W, if one uses the traditional metric of TDP. However, OEMs can reach 7W if they sacrifice some performance. 2) Lenovo (LNVGY.PK) has unveiled the K900, the first phone to feature Intel's Clover Trail+ (2GHz., dual-core) Atom processor. It sports a 5.5" 1080p display and 13MP camera. 3) Wells Fargo is optimistic about the ability of Ivy Bridge to "carve out a high profit segment of the tablet market," but Canaccord is worried about device cost, bulk, and battery life.