Tag Archives: IBM

News Digest: March 31-April 2, 2012 报摘： 2012年3月31日-4月2日

By on

The following press releases and media reports about Chinese companies were carried on March 31-April 2. To view a full article or story, click on the link next to the headline.

══════════════════════════════════════════════════════

◙ Apple (Nasdaq: AAPL) Preparing to Invest $9.76 Bln in Taiwan’s Hon Hai (Taipei: 2317) – Report (Chinese article)

◙ People’s Daily Website IPO Approved, to Launch After Qing Ming Festival (Chinese article)

◙ Dangdang (NYSE: DANG), Gome Online Launch Electronics, Computers B2B2C Platform (PRNewswire)

◙ IBM (NYSE: IBM) China to Build Cloud Computing Center in Jilin (English article)

◙ Sino-Forest (Toronto: TRE) Files for Bankruptcy Protection, Seeks Sale (English article)

Lenovo Completes Leadership Change, Yang Uninspired 联想完成高层调整，杨元庆难鼓舞人心

By on

Ambitious PC maker Lenovo (HKEx: 992), arguably China’s best known global brand, is sending out signals that it has completed a transition that will see founder and longtime leader Liu Chuanzhi formally bow out of the company, though the first comments from new head Yang Yuanqing are hardly inspiring. Liu was notably absent at the opening of the National People’s Congress that started this week in Beijing, with media citing an unnamed illness for his failure to attend an annual event he has gone to for years alongside the nation’s top politicians and business leaders. (Chinese article) At first I thought this might be cause for concern, as Liu was the main force that built Lenovo from a small PC seller in Beijing to the world’s second biggest brand through a series of acquisitions and strong focus on developing markets. But now we’re seeing that Yang, his hand-picked successor, is speaking for the company on the sidelines of the NPC in Beijing. That, coupled with the Hong Kong stock exchange’s disclosure yesterday that Yang has recently exercised a large number of options to buy Lenovo shares, seem to be the company’s way of saying that Yang is officially taking over at the helm of Lenovo and Liu will no longer take part in major decisions, following his formal retirement last year. (previous post) So, what exactly did Yang say at his first NPC since taking over at the helm? Instead of making grand visionary statements about where he sees the company going or what products and markets will power it into the future, he chose to talk about the more mundane subject of the burdens of China’s high value added tax and how that is making its products more expensive. (Chinese article) Clearly this issue is an important one for Lenovo, which still counts on China for half of its sales, and it’s also  quite possible Yang also made some visionary remarks that reporters simply chose to ignore. But from my perspective, these kinds of remarks don’t offer the most reassuring sign for investors, reflecting more the kinds of things a bureaucrat and manager would focus on rather than the bigger issues we should expect from the chairman of such a major company. Obviously you can’t draw too many conclusions from just one set of remarks like this. But history watchers will recall that Yang was formerly given the chairman’s job after Lenovo’s landmark purchase of IBM’s (NYSE: IBM) PC assets in 2005, only to have to step aside and let Liu return after the company ran into numerous problems several years later. The same could soon happen if Yang continues to perform like a bureaucrat and mid-level manager, boding poorly for the company’s longer-term future. And this time, Liu won’t be there to fix things if the company runs into problems.

Bottom line: Remarks by Lenovo’s new chairman at his first National People’s Congress reflect a lack of broader vision, boding poorly for the company’s longer term future.

Related postings 相关文章:

◙ Liu Steps Down at Lenovo — Again 柳传志再度卸任联想董事会主席

◙ Acer Trips, Lenovo Next? 联想应避免重蹈宏基覆辙

◙ Lenovo Results: Honeymoon Nearing an End? 联想并购後的蜜月期何时结束？

News Digest: November 25, 2011

By on

The following press releases and media reports about Chinese companies were carried on November 25. To view a full article or story, click on the link next to the headline.

══════════════════════════════════════════════════════

◙ Group Buying Site 24quan Closes, Thousands of Users Refused Service (Chinese article)

◙ Alibaba (HKEx: 1688) Third-Quarter Profit 410 Million Yuan; In Line With Estimates (English article)

◙ Group Buying Site Meituan Issues Options to Employees – Source (English article)

◙ China Workers Strike at Lingerie, IBM (NYSE: IBM) Parts Factories Demanding More Pay (English article)

◙ China Telecom (HKEx: 728) Gets China Rights for iPhone 4S – Source (Chinese article)

Liu Steps Down at Lenovo — Again 柳传志再度卸任联想董事会主席

By on

China’s business world is fast becoming the land of deja vu, at least from my perspective. Just a day after Apple (Nasdaq: AAPL) snubbed China for a second time by excluding the country from its international launch list for its  latest hot product (previous post), PC powerhouse Lenovo (HKEx: 992) has announced that co-founder Liu Chuanzhi is stepping down as chairman for a second time. (company announcement) But the deja vu doesn’t end there. Not only is Liu stepping down a second time, but his heir apparent is Yang Yuanqing, who also took over the chairmanship the first time Liu stepped down shortly after his company’s historic purchase of IBM’s (NYSE: IBM) PC assets in 2005. My question is: if Yang couldn’t succeed the first time, which prompted Liu to return to the chairmanship in 2009, then why does Liu suddenly think he will succeed now? In all fairness, things are a little different this time around. The last time Yang was named chairman, an American, Bill Amelio, was also brought in as CEO to help Lenovo digest its then newly-purchased IBM business. That combination proved too difficult for Lenovo, which incurred losses and underwent a major restructuring that prompted Liu to return as chairman in 2009. This time around, Lenovo has also just posted very nice earnings that saw its profit surge 88 percent in its latest quarter (English article), partly due to recent acquisitions in Germany and Japan, as it zoomed past Dell (Nasdaq: DELL) to become the world’s second biggest PC seller, behind only Hewlett-Packard (NYSE: HPQ). But those new acquisitions also look very much like the IBM purchase, in that both are in mature Western markets, which have been a difficult area for Lenovo in the past. I would like to think that Yang could succeed this time and Liu, now in his 70s, can permanently retire. But I sense that Yang’s return will signal more rocky times ahead, with earnings likely to take a hit as Lenovo stumbles in trying to integrate its Western acquisitions and grab more global market share.

Bottom line: Liu Chuanzhi’s departure as chairman of Lenovo for a second time signals a rocky period ahead for the company.

Related postings 相关文章:

◙ Lenovo Takes Backward Step With Compal JV 联想和仁宝合资建厂为倒退举动

◙ Acer Trips, Lenovo Next? 联想应避免重蹈宏基覆辙

◙ Huawei, Lenovo Look to Foreign Advisors in Westward Drive

Huawei, Lenovo Look to Foreign Advisors in Westward Drive

By on

There’s a couple of interesting new hires out there from Chinese tech firms Huawei and Lenovo (HKEx: 992), which are both clearly aimed at boosting their global operations. Whether either will succeed is a different matter, though both look like good ideas to me at first glance. First Huawei, which has hired IBM (NYSE: IBM) as a brand strategy consultant for its push into tablet PCs, smartphones and cloud computing. (English article) Like its smaller rival ZTE (HKEx: 763; Shenzhen: 000063), Huawei wants to expand into theses 3 new areas as its growth slows in its core business of making telecoms networking equipment. IBM has a strong record as a brand builder, retaining its image as a premier tech name even after selling its flagship PC business in 2005. Huawei is now in a similar situation to IBM, wanting to transition from a brand known mostly to industry people to a more mainstream consumer name. I’m sure it’s paying IBM big bucks to help in this transition, and that money should be well spent if it can make good cellphones and tablet PCs, which still remains to be seen. As to Lenovo, the company has hired a new advisor in the form of Gianfranco Lanci, who many will remember as the man behind Acer’s (Taipei: 2353) recent rise to become the world’s second biggest PC seller. (Chinese article) Lanci, who correctly predicted the move to laptop computing from traditional desktops, abruptly left Acer earlier this year (previous post) as it became clear the company was running into trouble from relying too heavily on cheap computers and failing to lead in new categories like smartphones and tablet PCs. Still, I like Lanci for his previous foresight and savvy marketing, and think he could be a strong advisor for Lenovo in his home base of Europe. If this relationship works out well, I wouldn’t be surprised to see Lanci eventually join Lenovo in an executive position, perhaps even C-level.

Bottom line: The hiring of top western names by Huawei and Lenovo look like smart moves by both companies for their drives into Western markets.

Related postings 相关文章:

◙ Huawei, ZTE Ratchet Up Western PR Offensives 华为和中兴加紧西方公关战

◙ Acer Takes a Hit With Lanci Leaving 宏基痛失兰奇

◙ ZTE Gambles With Smartphone Share Grab 中兴通讯押注智能手机业务

Lenovo Considers Dangerous HP Computer Bid 联想应慎购惠普PC业务

By on

Don’t do it! Those are the only words of advice I can offer Lenovo (HKEx: 992) Chairman and founder Liu Chuanzhi, whose latest comments indicate his is weighing a possible bid for the PC assets that global leader Hewlett-Packard (NYSE: HPQ) is putting up for sale. (Chinese article) Liu, who built Lenovo from a local computer builder into the world’s fourth largest PC brand, was understandably reserved in his remarks to reporters on the subject, but his constant use of the phrase “something to consider” indicates to me that his mind is already moving in the direction of making a bid, an easy conclusion to make in light of his fondness for acquisitions that have included his blockbuster purchase of IBM’s (NYSE: IBM) PC business, and its more recent takeover of smaller PC operations in Japan and Germany. (previous post) Liu, if he did make a bid, would clearly be looking to vault his company past Dell (Nasdaq: DELL) and Taiwan’s Acer (Taipei: 2353) to become the world’s top PC player, which this deal would clearly do. But the risks are huge, and it’s not at all clear to me that Lenovo could survive a successful bid, especially as it faces huge new competition from Apple (Nasdaq: AAPL) in its home China market that accounts for half of its sales. (previous post) At the top of my list of concerns is the very real possibility that Lenovo would seriously overpay for the HP unit, as it faced strong rival bids from better-funded companies like Samsung (Seoul: 005930), Acer, and perhaps even Dell. But even more important, Lenovo would have an extremely hard time integrating its own business with HP’s, which is already much bigger and far more complex due to the company’s longer history and vast geographic reach. Lenovo might argue its IBM PC purchase has given it valuable experience in such integrations, which is partly true. But let’s also not forget the IBM integration was especially painful for Lenovo, and there’s every reason to believe that HP would be even more painful. If Liu Chuanzhi is smart, he will do his due diligence on HP’s PC business, and quickly decide it’s not worth bidding.

Bottom line: Recent comments from Lenovo’s chairman indicate he may be considering a bid for HP’s PC business — a move that if successful would prove disastrous.

别收购惠普PC业务！这是我给联想(0992.HK)创始人兼董事长柳传志的唯一建议。柳传志的近期评论暗示他正在权衡是否收购惠普(HPQ.N)旗下的PC业务。柳传志把联想从一个本土电脑商打造为全球第四大PC品牌，对记者的这一问题表示了可以理解的保留态度。但我认为，他多次使用“值得考虑”一词表明，他有意参加这次竞购，何况他向来喜欢并购，联想曾收购IBM(IBM.N)的PC业务，近期又收购日本NEC和德国Medion公司的PC业务。如果柳传志竞购惠普PC业务，明显是希望超过戴尔和台湾宏基(2353.TW: 行情)，成为全球第一大PC制造商，该收购案如果成功确实能实现这一点。但联想收购惠普PC业务风险巨大，而且我尚不清楚，联想是否能竞购成功，尤其是联想在中国市场还面临苹果(AAPL.O: 行情)的巨大挑战。我最担忧的是，竞购惠普PC业务时，联想面对三星(005930.KS)、宏基、甚至戴尔等对手的强劲竞标，可能会出价过高。但更重要的是，联想在整合惠普与其自身业务时可能历经艰辛，因为惠普历史悠久、市场更多，所以业务更庞大，也更复杂。联想可能会辩称，收购IBM PC业务为期提供了宝贵经验，一定程度上确实如此。但请不要忘记，联想整合IBM时非常痛苦，我们有理由相信，整合惠普会更痛苦。如果柳传志聪明的话，他应该对惠普PC业务进行独立的尽职调查，并迅速作出惠普PC业务不值得竞购的决定。

一句话：联想董事长柳传志近期评论表示，他可能考虑竞购惠普PC业务，此举若成功，有可能会带来灾难性後果。

Related postings 相关文章:

◙ Lenovo Discovers the Right Formula a Little Too Late 联想再次“晚一步”

◙ Lenovo-NEC: Let the Defections Begin 联想与NEC结盟注定失败

◙ Lenovo Makes Strange Move Into Germany 联想进军德国令人摸不着头脑

Lenovo Discovers the Right Formula a Little Too Late 联想再次“晚一步”

By on

Leading Chinese PC maker Lenovo (HKEx: 992) has finally discovered a winning formula, beating market expectations with a profit that doubled in its latest fiscal quarter on the back of strong sales in its core emerging markets business. (company announcement) Unfortunately for Lenovo, however, it has discovered the formula just a little too late, underscoring its record for late arrivals to new product areas and boding poorly for its future. The company boasted that six years after its landmark purchase of IBM’s (NYSE: IBM) struggling PC business, it has finally managed to turn that unit around and posted a $77 million profit for its developed markets business in the quarter ended June 30. But it was less boastful about the fact that Apple (Nasdaq: AAPL), in a much shorter period, has come from nowhere to overtake it in terms of revenue in its home China market, which accounts for about half of Lenovo’s sales. (previous post) The company was also more muted on its recently launched smartphone and tablet PC offerings, the LePhone and LePad, which are clearly two important products of the future as people move away from traditional laptops and desktop models towards lighter, more mobile computing. According to calculations in one Chinese meida report, the company has sold just over 700,000 LePhones in the last 3 quarters in China (Chinese article), and the company itself admitted to an anemic 80,000 LePads sold in the latest quarter. (English article) That compares with Apple’s estimated 1 million iPads sold in China in the latest quarter alone, although obviously Apple has a head start there. Still, considering Lenovo’s weak performance for these key new products in its own home market, where it has numerous advantages over Apple, its latest seemingly strong results point to strong headwinds in the future, both at home and abroad.

Bottom line: Lenovo’s strong profit in its latest quarterly results masks serious weakness in the key future growth areas of smartphones and tablet PCs.

中国电脑巨头联想(0992.HK)终于发现了制胜法宝，公布其季度净利超乎预期地增长一倍，这主要得益于其核心的新兴市场业务强劲。但不幸的是，联想发现这个法宝的时机有点太晚了，正如联想在进军新产品领域方面常常都会晚一步，这对未来可不是个好兆头。联想收购IBM个人电脑(PC)业务已六年，终于已扭亏为盈，在截至6月30日的会计年度，联想成熟市场业务贡献了7,700万美元的利润，但这与苹果相比就不值一提了。苹果在比这短得多的时间里，在中国市场几乎从零开始，在该市场销售已经超过联想。此外，联想最近推出的智能手机和平板电脑，市场反响平平，而这两个产品代表着未来发展方向。据中国媒体报导，联想在过去三个季度中乐Phone销量仅略超出70万支，而联想也表示上季乐Pad仅卖出8万台。与之形成鲜明对比的是，单是上季苹果iPad在中国销量就达到100万台，当然苹果在平板电脑市场是占了先机的。中国是联想的本土市场，本应享有天时地利，其新产品表现却远远不及苹果，因此尽管其最新季度财报貌似强劲，未来不管在国内市场，还是国际市场，都还面临沉重压力。

一句话：联想最新季度获利强劲，但千万别忽略其在智能手机和平板电脑领域的薄弱表现。

Related postings 相关文章:

◙ Apple on a China Roll, Ambushing Nokia, Lenovo 苹果伏击诺基亚和联想 在华发展势如破竹

◙ Lenovo-NEC: Let the Defections Begin 联想与NEC结盟注定失败

◙ Lenovo Makes Strange Move Into Germany 联想进军德国令人摸不着头脑