Chinese Brand Lenovo Australia became a world leader in the production of computers and laptops, but struggle a bit to achieve success as much in Laptops over the smartphone market, even with the help of Motorola. Now let’s look at the Lenovo Sale Australia, by which it has become the world’s largest manufacturer of laptops and is currently engaged in the production of smartphones under the Moto brand. Before that, let’s have a quick look from where the brand started its journey.
History of Lenovo Brand
In 1984, Chinese engineer Liu Chuanzhi, together with ten members of the Institute of Computer Science from the Chinese Academy of Sciences, founded the New Technology Development Company. At the first stage, they started importing televisions, electronic watches, roller skates, and other goods to China, but the business quickly failed.
It should be understood that not one of the team members had experience in business – this is a group of scientists and engineers. Lack of experience and a complete lack of understanding of the market became a problem that Liu Chuanzhi recognised in the future. The Chinese Academy of Sciences provided the initial capital for the young company so that they had the opportunity to try new ways of development. The investment was 200 thousand Yuan, and then it was about 25 thousand US dollars.
After the first unsuccessful attempt, the company started checking the quality of computers before selling them in Chinese stores. In parallel, they spent money and effort on developing a circuit board that would allow IBM-compatible computers to work with Chinese characters. It was released already in 1986.
The development of their board was the first achievement in the history of the company, and in 1988 for it, they received the main award of the Chinese national award in the field of scientific and technological progress.
Lenovo Computer Market
Lenovo (Legend) did an incredible job in the 1990s. It all started with the announcement of the first branded Lenovo 286 computer for the home market. At the same time, the Chinese government abolished the quota system and reduced taxes on imported computers, which helped large foreign companies to work more freely in this market.
In parallel with the development and production of branded computers, Legend began distributing devices from HP and Toshiba. Now it is not clear whether it was planned or so coincided, but the distribution business allowed the company to create the first large logistics network in China – this is useful for distributing branded Legend computers.
In 1993, Legend introduced its first Intel Pentium-based computer, and two years later, the first ready-made server appeared.
In 1994, Legend entered the Hong Kong Stock Exchange. The team attracted investments of $ 30 million, but the Chinese Academy of Sciences remained the main investor. For China, this was the first example when a small company enters the securities market and collects money, as has happened many times in the west.
It is still not clear what caused Legend such success in the computer market. Perhaps the important role was played by the fact that this is a completely new market and foreign companies only got the opportunity to work comfortably on it so that they have not had time to gain a foothold in it. Either the company’s relationship with the Chinese government helped, which, although not directly, is a co-owner of the company.
Another important event in 1998 – Legend released its millionth computer. It was presented to Andrew Grove, co-founder of Intel, who pulled the company out of a massive crisis in the 90s. The computer now stands in the Intel Museum.
By the end of the 90s, Legend received the status of the largest manufacturer and supplier of computers among all countries of the Asia-Pacific region. It was not able to conquer only the Japanese market, which strengthened local brands.
Lenovo entering the World market
Legend (Lenovo) has prepared thoroughly for the new millennium. A year before, the brand introduced the first computer, completely ready to work with the Internet. Then about a million Chinese people had easy access to the global network.
At this stage, the main company Legend Holdings divided the business of manufacturing computers (Legend) and importing PCs, laptops, and printers (Digital China) into different divisions. In 2003, the company announced its readiness to enter foreign markets; for this, the Legend division was renamed Lenovo, the company we know now.
All this time, Lenovo Australia continued to occupy a significant share of the computer market in China.
The most important event in the history of Lenovo took place on December 8, 2004 – the company announced the purchase of IBM’s computer business along with the ThinkPad brand. The company received a ready-made business for the production and supply of computers around the world. So Lenovo Australia became one of the first Chinese companies to gain access to the global market on a large scale.
Immediately after the completion of the acquisition of IBM’s business, Lenovo became the third largest PC manufacturer in the world, behind HP and Dell in the first two places.
Already in 2006, the all-new Lenovo Australia is acting as a partner of the Olympic Games in Italy. In the framework of cooperation, the company supplied 5,000 desktop computers, 1,000 laptops, and 350 servers.
Lenovo made a successful decision after purchasing part of IBM – they did not change their business which ultimately increases Lenovo Sale in Australia and Worldwide. The company continued to develop its ThinkPad line of business laptops and still retains the design of the original models. For example, modern ThinkPad models still use the TrackPoint joystick on the keyboard.
In general, the ThinkPad brand will play an important reputation in Lenovo history – notebooks in this line regularly receive premiums for quality and reliability. This is confirmed by the fact that ThinkPad computers have been used on the International Space Station and other spacecraft for more than 20 years.
In April 2006, Lenovo signed an agreement with Microsoft to install Windows on its devices – the deal amounted to $ 1 billion. Computers were sold without an operating system in China at that time, so many preferred pirated versions.
Since 2007, ThinkPad laptops in Australia began to come out with the Lenovo logo, before that they were produced under the IBM brand – these were the conditions for buying a business.
In 2008, Lenovo introduced the Idea brand – IdeaPad laptops Australia and IdeaCentre desktops. This line was created to participate in the middle and low price segments, while ThinkPad computers are mainly at a price level above the average.
The launch of the new brand was successful. A year later, the company reported on a million sold Idea devices. They began to be sold in China, America, India, Australia, South Africa, France, and many other countries. But Lenovo Sales in Australia and Worldwide kept it in third place among global manufacturers.
In parallel with computers, Lenovo engaged in the development and sales of regular phones, and the first ones appeared back in 2002. Many do not know about this, because the business was a failure, and the company is trying not to mention it. In 2008, the company sold its mobile phone business for $ 100 million. A year later, they saw the rapid development of the market, decided to return the unit, but already had to pay twice as much.
Rehabilitation after failure with the phones took a little time. In January 2010, Lenovo Australia took part in the CES exhibition in Las Vegas – at a separate event, they introduced the first LePhone smartphone (nothing to do with LeEco). The model was produced only for the Chinese market, and outside it was of little interest to anyone. This is a small smartphone with a 3.7-inch AMOLED display and an unusual design. Worked LePhone based on modified Android and a single-core Snapdragon processor.
And again, a new business began successfully for the company. A year later, the company had more than five models in its assortment; a Mobile Internet Digital Home (MIDH) division was created to develop the production of smartphones, tablets, and televisions with Smart TVs. For some, this will come as a surprise, but Lenovo really produces televisions, and there are monitors and even a printer.
Lenovo found out about Lenovo smartphones Australia only at the end of 2012 – M. Video got exclusive rights to sell IdeaPhone S880 and P770i models.
Low price and wide assortment allowed Lenovo in 2013 to enter the top five world leaders in smartphone manufacturers. But you should understand that approximately 95% of smartphone sales are in the home market. In the same year, the company became the market leader in computers, leaving behind HP and Dell.
The first on Android was the ThinkPad Tablet. He received a 10.1-inch display with a resolution of 1280 × 800 pixels and a Tegra 2 chip. By design, it is in many ways similar to laptops from the same line, and of the exciting solutions, there was only a stylus.
In 2014, there were two major deals for Lenovo. Lenovo Australia announced the purchase of another division from IBM – the System x line of server workstations. And a week later, they talked about plans to buy Motorola Mobility from Google.
Lenovo bought a loss-making company without patents and valuable employees – all this remained with Google. This may seem like a worthless purchase, but it is not. Lenovo, together with Motorola, bought a well-known name and potential exit to other important countries of the world, which so far failed to conquer a little-known Chinese company.
The first smartphones under the Moto brand after the purchase of the company were Moto X (2014), on which Lenovo’s influence was not noticeable. The following smartphones Moto X Style, X Force, and X Play also looked like a logical continuation of the last generation, although they already had more questions. Together with new smartphones, Lenovo wanted to pump back Motorola smartphones to the market.
In parallel with the release of Motorola smartphones, Lenovo continued to produce Vibe phones and other models, although it is difficult to single out interesting devices among them.
A cardinal change in the line was the release of modular smartphones Moto Z, Z Force, and Z Play. These were one of the most controversial smartphones of 2016, and the main complaints were about the design, the rejection of the 3.5 mm jack in the flagships, and modularity.
The idea of Moto Mods looks interesting, but because of the small scales of the smartphones themselves, they failed to make them famous. There is a module with a JBL speaker, with a projector, with an additional camera from Hasselblad and a bunch of others. Many of them began to give as a gift to buy a smartphone or sell at a discount.
Together with the flagship Moto Z and Z Force at Lenovo Tech World 2016, the company introduced a folding tablet and a flexible smartphone that you can put on your hand like a bracelet. But it was only a beautiful demonstration of opportunities; after the presentation, they were not remembered.
In February 2017, Lenovo Australia announced that in the future, it would no longer produce smartphones under the brands Motorola, Vibe, and other names, only Moto will remain. Along with this, Lenovo announced that Motorola smartphones are again returning to the market. After all, the company held a significant event in Moscow, at which the legendary brand was announced to return after the scandalous events in the 2000s, and after a little more than a year, the band returned to the market. Bizarre move indeed.
Three years after the transaction, it is difficult to call it successful. Gradually, Lenovo Australia introduces new models, especially a lot of budget and mid-priced models that have appeared: Moto G, Moto E, Moto C, Moto X4, and others.
Despite the setbacks in the mobile market, Lenovo is doing well in the computer market. From 2013 to 2016, the company held the championship, and only 2017 ended for the second place, exchanging places with HP, although the difference in market share is still small.
Lenovo has become a company in one direction – computers. All other areas are either unprofitable or do not bring as much money as the production and sale of laptops and desktop computers.
Lenovo Australia does not have a charismatic and well-known leader; at least it is unlikely that you will be said something by the name of Yang Yuanqing, who has been the CEO since 2009. Therefore, it is also tricky to recall attractive models of smartphones among the company’s assortment – these are average devices, of which a huge amount has appeared since 2010.
Lenovo Store in Australia has launched from where you can purchase any Lenovo product at a reasonable price. The company has a whole group of fans of ThinkPad laptops and, judging by the reviews, and the company continues to keep the brand manufacturing the ThinkPad Laptops. If you are looking to buy Lenovo laptops in Australia, you can order it from Paylessdeal, which offers the best and cheap Lenovo Laptops Prices Australia. So what you are waiting for? Just avail this best offer.