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Will Lenovo Go Public In 2K14?
Lenovo’s parent firm Legend Holdings could float an initial public offering (IPO) as soon as 2014, according to the firm’s chairman.
Liu Chuanzhi, chairman of Legend Holdings told China Business News that the firm plans to list on the China A-share market between 2014 and 2016. Chuanzhi also reportedly said the company will invest $3.2bn by 2014 to develop its various businesses.
Legend Holdings is 36 percent owned by the Chinese state controlled Academy of Sciences, with a further 20 percent owned by the private investment firm China Oceanwide Holdings Group.
Legend Holdings also has venture capital and real estate interests outside of Lenovo Group. The firm’s system building operations however have gone from strength to strength since it bought IBM’s PC business back in 2005, and it is now heavily promoting its Yoga tablet-laptop hybrid device.
Earlier this year Gartner reported that Lenovo had overtaken HP to become the largest PC vendor, something that HP disputed by offering IDC’s figures. Regardless of HP’s protestations then, Lenovo is set to overtake HP as its PC business continues to grow while HP’s has been shrinking for some time.
Legend Holdings might want to cash in on Lenovo’s high flying status and a cash injection from an IPO could help the company invest in designing products for the smartphone and tablet markets.
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Lenovo On The Rise
Lenovo has topped off a great 2012 with record sales figures and revenues, and claimed it took 15.6 percent of the PC market.
Lenovo is the PC maker that has bucked the industry trend of a shrinking PC market, posting faster than average industry growth for 14 consecutive quarters. All of that has left the firm announcing an 11 percent increase in second fiscal quarter sales to $8.7bn with profits of $162m, an increase of 13 percent over the same period last year.
Lenovo has managed to maintain the legendary status held by IBM’s Thinkpads and introduce its own low-cost models aimed at consumers. The firm has also been pushing smartphones in China and close to half of its revenues in its second fiscal quarter came from its home market.
Yang Yuanqing, chairman and CEO of Lenovo said, “Our global PC market share reached another historic high, moving us closer to our dream of becoming the worldwide PC leader. With four years’ effort, our consumer PC business has become the world’s number one in this segment for the first time. Our smartphone business in China, which we started only two years ago, has again strengthened its number two position,”
Will Sharp Collapse?
November 13, 2012 by admin
Filed under Consumer Electronics
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Japanese troubled telly maker, Sharp, has warned that if it can’t do something radical soon, its business could go the way of the dodo and T-Rex.
Despite being a major supplier of LCD displays to Apple and other manufacturers, the company has admitted that it can’t survive in its current form. According to Computerworld the company said that there is “material doubt” about its ability to continue operating. The company thinks that it can cut costs and secure enough credit to survive and much of its plan for recovery is based on its IGZO technology for mobile displays. This technology uses less battery power than existing screens.
Sharp is also carrying out a restructuring plan in which it has reduced headcount, slashed employee salaries and mortgaged its buildings and factories. The company is booking a net loss of $5.6 billion for the year mostly to cover its restructuring costs. Its stock has been downgraded to junk status by ratings agencies and apparently its executives have been seen around Apple and Intel HQ’s with their cloth caps in their hands looking for bail outs, or investments, depending on who you talk to.
Sharp President Takashi Okuda said the company is continuing its negotiations with Hon Hai, even though so far these have not been going that well. Sharp made a mistake in that it thought that the world wanted LCD panels for large-screen TVs. It is now trying to switch over to the booming market for tablets and smartphones.
Lenovo Adds Enterprise Servers
Eager to expand its horizons beyond PCs and tablets, Lenovo on Monday announced the first server from the newly created Enterprise Product Group, which deals in servers, storage, networking and software.
The ThinkServer TD330 is a tower server based on Intel’s Xeon E5-2400 processors. The server will support up to 16 processor cores and start at $929.
Lenovo last week announced the formation of the Enterprise Product Group. It is headed by Roy Guillen, vice president and general manager of the division. Guillen was previously vice president and general manager of Dell’s data center solutions (DCS) division.
Lenovo already offers low-end servers and workstations for homes and small businesses, but the new division will target small, medium-size and large enterprises. Lenovo has offered low-end servers based on Intel’s Xeon E3 and E5 processors, but the company did not respond to a request for comment on whether existing ThinkServer products would be part of the enterprise product portfolio.
“We’ve placed expanded emphasis on building our server portfolio this year, introducing products that meet the needs of all our customers — from enterprise customers to small businesses,” Guillen said in a statement.
Lenovo established itself as a PC company after it bought IBM’s PC division in 2005. Lenovo’s progress in the PC market has been rapid, with IDC placing the company as the world’s largest PC vendor for the first time in the third quarter this year. The new enterprise division will put Lenovo in competition with IBM, Hewlett-Packard and Dell, which also sell x86 servers.
Tech CEOs Ready For Tablet Wars
The biggest names in consumer technology, smacked by a string of disappointing quarterly results this month, are gearing up for what appears to be the fiercest holiday battle in years.
Investors and consumers have already largely written off flaccid quarterly numbers from tech behemoths like Microsoft, Apple, Google and Amazon. What counts is the next 60 days, when the biggest names in technology do battle at a near-unprecedented scale and pace.
Just last Thursday, Amazon compared its Kindle Fire with Apple’s new iPad mini, point by point, in its earnings release, an unusual forum to name rivals. Apple CEO Tim Cook compared Microsoft’s Surface tablet to an over-engineered car that can fly and float. And Microsoft went for the iPad, saying its Surface boasted twice its storage.
All three tablets will vie for the shrinking consumer dollar these holidays. By tech standards, it’s getting ugly.
“The tablet space is where the growth is. That’s why they are all fighting over it. PC shipments are down and some tablet buyers may never buy another PC,” said Michael Allenson, strategic consulting director in the Technology and Telecom Research Group at Maritz Research.
Will HP Be Broken Up?
HP has been urged by investment bank UBS to break itself up in order to boost its share price.
After years of mismanagement, HP’s stock price is far lower than it was during the heady dotcom bubble days when it pulled off one of the biggest mergers in recent years by buying Compaq. Now the firm’s stock price languishes around the $14 mark, a figure that could top $20 if HP were to break itself up, according to UBS.
UBS analysts including Steven Milunovich reported the firm could “realise greater value” by splitting itself up. The analysts added that each separate division of HP is big enough to stand on its own, claiming, “HP’s units are not minnows but rather they are whales packed into the same pond.”
HP spokesman Michael Thacker claimed the firm’s customers want a big HP, effectively allowing them to have one supplier for their IT needs, a message the firm has been playing up for a number of years now. Thacker said, “No matter how you look at it we are confident that HP is stronger together than apart. The company’s operations across business units are deeply integrated and our customers have told us that they want One HP.”
Sharp Electronics Gets Downgraded
Sharp has had its credit rating cut to junk status by the Standard and Poor’s rating agency.
Sharp, which invested heavily during the LCD television boom in the mid 2000s, is now paying the price as demand for televisions slumps across the board. Now Standard and Poor’s has bestowed the ignominy of lowering Sharp’s credit rating to BB+, putting it into what’s called junk status.
Standard and Poor’s also warned that Sharp has weak cash flow and is facing worsening market conditions, two things that will not endear it to investors. It said, “Sharp’s liquidity position has weakened, and the company is highly dependent on short-term borrowings in light of weak internal cash flow and a less favourable funding environment.”
Sharp has had a troubled year and earlier this week announced that it will lay off 2,000 employees in Japan, as its LCD business simply cannot support itself. Standard and Poor’s said that unless Sharp’s fortunes improve, the firm could be hit with another credit rating downgrade.
Standard and Poor’s said, “We may consider lowering the ratings if Sharp’s earnings in (the year to March 2013) and prospects for its recovery deteriorate even further or the company’s financing environment and relationships with credit banks and strategic partners worsen.”
Dell Names Chief As Sales Tank
Dell has snagged a former Hewlett-Packard executive to head up its server, networking and storage division, a critical area for Dell as it tries to expand its data center business and reduce its dependence on PCs.
Marius Haas was head of HP’s networking business before leaving two years ago to join an investment firm. On Tuesday he was named president of Dell’s enterprise solutions business, where he’ll oversee the engineering, development and marketing of Dell’s enterprise products.
Haas replaces Brad Anderson, who ran Dell’s enterprise division since 2005 and is now leaving the company.
Dell announced the news on the same day it reported financial results for its second quarter, which closed Aug. 3. Its profit for the period declined 18 percent from a year earlier, to US$732 million, while revenue fell 8 percent to $14.48 billion, Dell said.
Its server and networking sales were among the highlights for the quarter, up 14 percent from last year, while sales of storage products were down 13 percent. Together, the three product categories account for about one-fifth of Dell’s overall business.
Toshiba Cancels Windows Tablet
Toshiba on Tuesday officially confirmed what Microsoft recently hinted at: It won’t be delivering a Windows RT-based tablet anytime soon.
“Toshiba has decided not to introduce Windows RT models due to delayed components that would make a timely launch impossible,” the Japanese electronics company said in a statement to Bloomberg earlier today. “For the time being, Toshiba will focus on bringing Windows 8 products to market. We will continue to look into the possibility of Windows RT products in the future while monitoring market conditions.”
Last June, Toshiba showed two Windows RT-based concepts — a tablet with a docking station and a “clamshell” design that resembled a keyboard-equipped ultralight notebook — at Computex. The devices were not operational, however.
Based on those concept devices, most had included Toshiba in the slowly-growing list of OEMs (original equipment manufacturers) that were believed to be preparing Windows RT hardware for launch this year or early next.
Lenovo Launches The IdeaPad
Although it was introduced six months ago at CES, Lenovo’s new IdeaTab has finally showed up at Lenovo’s site with a pretty decent price around $343.20. The IdeaPad comes with a 10.1-inch screen, Qualcomm’s dual-core Snapdragon S4 CPU, Android 4.0 ICS and optional keyboard dock, it certainly sounds like a good deal.
The specification list for the Ideatab S2110 kicks off with a 10.1-inch IPS 1280×800 display, Qualcomm’s 1.5GHz dual-core Snapdragon S4 CPU, 1GB of RAM and Android 4.0 ICS OS. The rest of the specs include back 5MP and front 1.3MP cameras, 802.11bgn WiFi, Bluetooth 4.0, and a battery capable of up to 9-10 hours of WiFi web browsing, according to Lenovo.
Same as the Asus Transformer line of tablets, Lenovo’s Ideatab S2110 also features an optional keyboard dock that gives you an extra ten hours of battery life and adds two USB ports and a card reader.