Honeymoon period for Lenovo and IBM is over! After tripling its earnings in the most recent quarter to $105.26 million, thanks to the cheap labor power in China, Lenovo has decided that it doesn’t need any IBM logo on its products. As a result of their success, the decision has come 2 years earlier than planned. I think Lenovo has made their own brand name internationally and no longer need IBM’s (Thinkpad) reputation to sell its products.
Lenovo Chief Executive Bill Amelio said as much following the company’s most recent earnings results, which was noted by E-Channel Line.
“By making substantial progress on all of our critical priorities over the past few quarters, we’re now a stronger, healthier company,” Amelio said. “One important sign of this progress is our decision to completely transition our Think products from the IBM brand to the Lenovo brand two years earlier than planned.” Previously there had been a deal made that allowed Lenovo to use the IBM logo on ThinkPads and some desktops for several years. The Chinese PC maker purchased IBM’s computer business in 2005 for $1.75 billion.
Recap in May 2007 - Lenovo’s overall revenue for that quarter — the fourth of its fiscal year — climbed 9 percent from a year earlier, to US$3.4 billion, helped by improved sales in all parts of the world, it said. Net profit was $60 million, up from a loss of $116 million in the same quarter in 2006.
Business was strongest in China, as usual, where PC shipments grew 24 percent from a year earlier. Shipments grew 18 percent in the rest of Asia Pacific, 14 percent in Europe and 9 percent in the Americas, the company said.
Popularity: 4%