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...global-distribution network and splurging on a brand-building campaign. The strategy could turn Lenovo into a far fiercer rival for Dell and HP than stately IBM was, and threatens to intensify the cutthroat competition that is a hallmark of the famously bloodthirsty PC business. "I eat, drink, sleep PCs," promises Amelio. "There is nothing else in my world...
...have a brand name in the U.S.," says Samir Bhavnani, director of research at tech-information provider Current Analysis in San Diego. Even worse, Lenovo is being buffeted by the some- times tense relations between the West and China. In May the U.S. State Department said 16,000 PCs it had purchased from Lenovo wouldn't be used for classified work after a Congressman claimed that the Chinese-made computers would threaten national security. Lenovo's chairman, Yang Yuanqing, insists his computers pose no security risk...
Lenovo was founded in Beijing in 1984 by 11 free-thinking researchers with $25,000 from a science academy. It markets PCs for every possible customer, from the top-of-the-line Pentium speedster to $300 bare-bones desktops. The growth potential for Lenovo in its home market appears limitless. IDC forecasts that PC sales in China will jump 57% from 2006 to 2010, to 36 million units. The U.S. market will reach 68 million units...
...company has already used Chinese know-how to score impressive results in that other great Asian emerging market, India. After being trained in Beijing, Lenovo's India managers increased the number of resellers nearly 40%, to 1,100 so far this year. Chinese-designed PCs were introduced to expand the product line and Bollywood stars hired to pump up the brand. India is also introducing Lenovo's SMS information system, by which distributors send daily sales reports. That allows managers to quickly adjust prices and product mix based on real-time data. Results? Lenovo's India sales jumped...
Ever since the world's geeks started downloading episodes of Star Trek to their PCs, Hollywood and Silicon Valley execs have been preparing for the day when the world's nontechies will also get their movie fixes (legally) online. That day took a step closer to reality last week, when Apple announced it would sell movie downloads through its iTunes store. The move raised the prospect that downloading flicks will take off among folks who don't know or care what a d-RAM chip is (that's pretty much everyone). Apple, after all, has sold more than 1.5 billion...