Gandalf_The_Grey
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- Apr 24, 2016
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On the 7th of December 2004, the unthinkable (pun intended) happened: IBM, the godfather of the personal computing industry thanks to its "invention" of the PC, announced that it was leaving the business. The most important brand of computers manufactured by IBM, the ThinkPad, would be made by a Chinese company called Lenovo from here on out - and it still does now, 20 years later. How did this happen? And how did Lenovo become the world's biggest PC manufacturer by volume?
With the reputation as the ThinkPad manufacturer, Lenovo also started to expand into the consumer market more. At first, many of the consumer laptops of Lenovo were of cheap quality and mainly designed by the Chinese part of the company. But over time, the Lenovo consumer laptops changed to be a little more like the ThinkPads, adopting similar keyboards and with the quality also improving. Also, more premium consumer brands like Yoga or the Legion gaming laptops were introduced.
In the end, Lenovo made the business work again. The margins were maybe thin, but selling PCs was profitable again. In 2013, Lenovo overtook HP as the largest PC manufacturer by volume, a title it still holds 11 years later. And with the profits and success in the PC market, Lenovo expanded into other areas as well: In 2014, Lenovo bought another US American brand, Motorola Mobility, adding a reputable smartphone brand to its portfolio. In the same year, IBM sold its System X server business to Lenovo, bringing things full-circle for the company.
20 years ago, IBM sold the ThinkPad: How Lenovo used it to become the PC juggernaut
December 2004: IBM, one of the founding fathers of the personal computing world, announces that its ThinkPad business is being sold to a then little known entity called Lenovo. 20 years later, the combined company is the largest PC manufacturer by volume - a success story is worth analyzing.
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