Lenovo Group Limited, the techno giant that develops, manufactures and markets personal computers (PC), recently purchased the Personal Computing Division of IBM for 1.25 billion dollars which boosted the company’s rank as the third largest PC vendor around the globe.
Since the purchase Lenovo has inherited all of IBM’s business partner relationships. This includes Bahamas-based Armoury Company Ltd. and Bahamas Business Solutions which are both authorised to sell IBM products that will now carry the Lenovo brand name.
Although Lenovo products are popular in several markets, its most lucrative market is China which carries the most extensive line of products produced by the mega technology company. However, smaller markets, such as The Bahamas, were assured of its importance under the Lenovo domain. The company feels that extensive opportunities to expand market share will exist through new and hi-tech products marketed to consumers.
“We came to reassure our partners and customers that The Bahamas still remains a very important market for us,” said Claude Duncan, Business Partner Manager at Lenovo Group Limited in Jamaica.
“The same world class products they are used to which provides lowest cost of ownership and the highest return on investment will continue to [be offered],” added Mr Duncan, who has responsibility for authorised sellers of IBM products in the Caribbean region.
Since the acquisition, one of the products touted on the market is the ThinkPad X41 Tablet which has received good reviews, as well as editor’s choice awards. “Where some may see the PC as a commodity with no more room for innovation, we see it just beginning to realize its potential as a tool for productivity and improvement in customers’ business and personal lives,” pointed out a press statement released by the company.
The company also announced that it would be undertaking a brand building exercise which could take a few years. In the meantime customers will continue to see the IBM logo on most logo products until that happens. Its really up to the store owners to educate consumers about the new brand.
Further into the process the computers and related products might carry both the IBM and Lenovo brand labels until IBM is phased out altogether, pointed out Mr Duncan. It’s a strategy that the company’s moguls are debating on right now.
Fortune 500 Magazine has also ranked Lenovo in the top five of technology companies. The company, which rakes in around $13 billion in annual revenue, reported a six per cent jump in profit for the second quarter, some of which it attributed to the IBM purchase.
Additionally, with the new acquisition, the company has ambitions of doubling its profits within three years. Reuters also reported “the firm said it expects the merger to generate cost savings of about US$200 million a year”.
Although analysts were initially skeptical about the profitability of the buy out when it was first announced a few months ago- shares on the markets dropped considerably- faith in the company has rebounded.
Up to last month Lenovo reported that its shares were 6 per cent over what it was when the company decided to acquire IBM.
The Armoury Company in Nassau hosted a press conference where Mr Duncan gave an overview of the Lenovo acquisition.
By: BARRY WILLIAMS,Guardian Staff Reporter, The Nassau Guardian
