What is Digg?4 Comments
- rickcarson, on 04/16/2008, -0/+1Since this this _is_ in the Apple section, allow me to compare Lenovo and Apple's financial numbers for '07. (If you hate Apple, look away from the screen now)
Lenovo had a pre tax income of $0.196 Billion, which after taxes was $0.169 Billion (15% tax rate), on revenue of $14.59 Billion.
Apple had a pre tax income of $5.008 Billion, which after taxes was $3.496 Billion (30% tax rate), on revenue of $24 Billion.
So Apple's profit is just over 20x that of Lenovo. - rickcarson, on 04/16/2008, -0/+1To recap:
IBM doesn't make ThinkPads anymore, Lenovo does.
The business relationship between IBM and Lenovo:
At the end of 2004 Lenovo bought a 5 year license to sell computers using the IBM brand name (this has about 1.5 years to run). However, Lenovo announced last year they are going to jump the gun, and drop the IBM brand from the ThinkPad line ~2 years before the agreement would otherwise end.
The terms of the deal:
IBM owned about 18.9% of Lenovo, and transferred ~ 10,000 people from their personal computer division to Lenovo (which had ~ 9,200 people). You might look at this as a very cunning way for IBM to layoff a large number of people in an under-performing division, without all the negative PR associated with layoffs.
For this privilege, Lenovo paid IBM $1.25 Billion. They were estimated at the time to be able to make about $12 Billion in revenue from combined sales, and be the third largest PC seller (at the time, moving Lenovo up from ninth place). Their current revenue is about $14.5 Billion, but they seem to have been passed by Acer. This article
http://www.appleinsider.com/articles/08/04/16/appl ...
Puts them in fourth spot of world wide market share, a position they seem to have had for a while, with 6.7% (Acer is ahead of them on 9.5%). - feedmeplease, on 04/16/2008, -0/+1lol
- tycy, on 04/16/2008, -0/+1Yeah ... smart move !
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