2013年2月22日星期五

Lenovo to create ThinkPad-focused business unit to compete at the high end

IDG News Service - Lenovo is reorganizing its operations into two business groups, in an apparent move to leverage the company's ThinkPad brand to better compete in the market.
The reorganization, which will be completed on April 1, seeks to "sharpen" the company's branding and further streamline operations, said Lenovo in a statement Monday. As part of the restructuring, it will create two new divisions, Lenovo Business Group and Think Business Group.
The Lenovo Business Group will focus on mainstream products including consumer and commercial PCs and tablets, along with smartphones. The Think Business Group, on the other hand, will develop premium products for commercial and consumer segments, and also focus on the server and storage business.
Lenovo operates with a global product division that covers its PC and server business. In 2011, the company established a Mobile Internet and Digital Home business unit focused on tablets and smartphones.
The announcement of the reorganization comes after an internal email message from Lenovo CEO Yang Yuanqing revealing the move was leaked to the Chinese media over the weekend.
In the message, Yang said the company discovered the Lenovo brand performed well in mainstream and low-end market segments, but that its "Think" brand excelled in higher-end markets, where it could compete with Apple.
"We need to clarify and simplify our brand strategy, to let the market clearly understand the brand positioning of Lenovo and Think," he said.
Lenovo spokeswoman Angela Lee said the company would only confirm the reorganization, and had no further comment.
The Chinese company's Think brand comes from its 2005 acquisition of the ThinkPad PC business from U.S. firm IBM. Since then, Lenovo has risen to become the top PC maker alongside Hewlett-Packard, and analysts point to its ThinkPad products as a major factor behind its success.
The reorganization could be similar in approach to that of car maker Toyota, which successfully developed its luxury brand Lexus to tackle the premium market, said Bryan Ma, an analyst with research firm IDC. Lenovo, which was founded in China, has struggled to develop its brand in more mature markets such as the U.S. The ThinkPad brand, however, benefits from an established following.
The reorganization, however, also could be a "step back" for the company, which has tried for years to successfully merge Lenovo with the ThinkPad business, Ma said.
"It potentially signals that they've somewhat given up on trying to integrate the IBM PC business with the Lenovo brand name," he said. "They've put Lenovo China in one group, and the old IBM business back in its own group."
Peter Hortensius, the head of Lenovo's Product Group, will lead the Think Business Group. Liu Jun, head of its Mobile Internet and Digital Home business, will take the reins of the Lenovo Business Group.

Apple CEO shoots down idea of cheap new iPhone

Cook says there are other ways to boost revenue, like lowering older model prices and creating new products By Agam Shah,
IDG News Service - Apple will not create a new, inexpensive iPhone just for the sake of offering a cheaper alternative, Apple CEO Tim Cook said in a speech on Tuesday.
The company's focus is on creating great products, and it will not make a smartphone that does not past the quality test, Cook said during a webcast from the Goldman Sachs Technology and Internet conference, which is being held in San Francisco.
"There are other companies that do that, that's not who we are," Cook said. "Our North Star is great products."
Instead, the company is now dropping prices on the older iPhone models. That has been successful, and the demand for iPhone 4 models in December was greater than supply, Cook said.
"It surprised us as to the level of demand we have for it," Cook said.
Lowering the price on older models is just one of the approaches Apple is taking to reach out to price-sensitive buyers. It's not easy to balance quality and price, and that's when innovation comes into play and new products could be created to meet consumer demand, Cook said.
"Sometimes you can take the issue ... and you can solve it in different ways," Cook said.
For example, the first iPod that shipped in 2001 was priced at $399, and now users can buy an iPod Shuffle for $49. There was also a big demand in the past to drop the price of Macs to under $500, and Apple tried and couldn't do it, so it created the iPad tablet.
Apple will have more room to grow in the smartphone market, and its market share has not flattened in the wake of increased competition, Cook said.
The global smartphone market is about 700 million units, and is projected to double in a few years, Cook said. The iPhone is also available to only 50 percent of subscribers worldwide, with a big market to tap into.
In addition, iPhone shipments are increasing at a fast rate, Cook said. About 500 million iPhones shipped from 2007 to the end of last year, with 40 percent of the iPhones shipping in the last year, and 47.8 million shipping in the last fiscal quarter.
"Frankly, I see a wide open field," Cook said.
Beyond the iPhone, Cook said that the tablet market will continue to grow, and is projected to top 375 million in three years, which will outpace the contracting PC market.
"I think we're in the early innings of this game," Cook said.
Apple will also continue to look at acquiring companies as it builds products, but will be especially careful when looking at big companies.

"We have looked at large companies. In each case we have done that thus far, it didn't pass our test," Cook said.
The company has made many acquisitions over the last three years, mostly smaller companies that have smart people and valuable intellectual property, Cook said, giving the example of chip maker PA Semi.
PA Semi helped in the development the chips and engines that run the iPhone, iPad and iPod. At the time of the acquisition in 2008, PA Semi was working on chips based on the Power architecture, but that was abandoned and the new personnel were moved over to work on Apple's ARM-based chips.
"We will do more [acquisitions], we are constantly looking in the market," Cook said. "Cash is not burning a hole in our pocket."
The company is not under pressure to acquire new revenue streams and will look to acquire companies with complementary skill sets and offerings, Cook said. Apple has a cash reserve of $137 billion.

2013年2月20日星期三

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