You remember Lenovo, right? Lenovo is the technology giant from China which helped IBM exit the PC business. Think ThinkPad, tablets, and the world’s largest PC maker.
The latest news from Lenovoland is that the company wants to be the next Apple. Or, Samsung. Or, maybe bigger and better than both companies put together. How does Lenovo hope to become an even bigger tech behemoth? By buying discarded, failing technology companies.
One Man’s Steak
Lenovo bought IBM’s failing PC business back in 2005 and it’s officially the largest maker of smartphones in China.
Guess what? Lenovo, in its quest to become Apple-like, or Samsung-like, or maybe one day merely as profitable, is still shopping for discarded tech garbage.
The company bought the failing Motorola business from Google for a few billion dollars, and wants IBM’s x86 server business, too (IBM seems to have developed a 21st century allergic reaction to hardware).
Lenovo is so full of discarded businesses that it had to reorganize itself (which is what you do when trying to digest technology castoffs).
There’s the PC group with ThinkPad, a mobile business group with smartphones and tablets, an enterprise division with storage and servers, and, of course, Lenovo is in the business every tech company loves– highly unprofitable cloud services.
Lenovo’s discarded garbage strategy hasn’t paid off in the stock market, either, as shares took a dive when the company announced that it was talking to Sony about buying the failing Sony Vaio PC business outside of Japan.
Sure, that’s a great technology strategy. Buy all the failing PC businesses just when PCs have entered the post-PC era and manufacturers are almost giving them away.
Wall Street may not agree with Apple’s strategy to make real money on the products it sells, but look around. Every leg on Apple’s technology chair is a proven money maker and growing in revenue and profit.
Meanwhile, Apple’s competitors struggle to make even a measly profit on their technology ventures. To their credit, Lenovo has a different plan than most. They’ll lose money by buying other companies which also lost money.