The Notebook Review forums were hosted by TechTarget, who shut down them down on January 31, 2022. This static read-only archive was pulled by NBR forum users between January 20 and January 31, 2022, in an effort to make sure that the valuable technical information that had been posted on the forums is preserved. For current discussions, many NBR forum users moved over to NotebookTalk.net after the shutdown.
Problems? See this thread at archive.org.

    Lenovo missed earnings and has a sell rating

    Discussion in 'Lenovo' started by stylinexpat, Feb 5, 2009.

  1. stylinexpat

    stylinexpat Notebook Evangelist

    Reputations:
    0
    Messages:
    454
    Likes Received:
    0
    Trophy Points:
    30
  2. jaredy

    jaredy Notebook Virtuoso

    Reputations:
    793
    Messages:
    2,876
    Likes Received:
    1
    Trophy Points:
    56
  3. swarmer

    swarmer beep beep

    Reputations:
    2,071
    Messages:
    5,234
    Likes Received:
    0
    Trophy Points:
    205
    There's bad and then there's really bad.

    From that bloomberg article:
    I'd say that's really bad.
     
  4. ienhz

    ienhz Notebook Enthusiast

    Reputations:
    0
    Messages:
    43
    Likes Received:
    0
    Trophy Points:
    15
    I'm not at all surprised. They have some very good products but their marketing, brand image, and presence (apart from the die-hard loyal business customers) is non-existent.

    Getting their products back into big box stores like Best Buy would be a start... Hell, you can't even find Lenovo products at small computer stores in Canada.
     
  5. QualitySeeker

    QualitySeeker Notebook Consultant

    Reputations:
    39
    Messages:
    221
    Likes Received:
    0
    Trophy Points:
    30
    So I better wait before taking 4 years warranty? :eek:
     
  6. ZaZ

    ZaZ Super Model Super Moderator

    Reputations:
    4,982
    Messages:
    34,001
    Likes Received:
    1,415
    Trophy Points:
    581
    Times are tough right now. A $96 million doesn't seem all that bad for a company with $17 billion in revenue. Perspective is key. This hardly effects my life. With all these companies laying off it's hard to see where demand picks up. It sort of becomes a self-fulling prophecy. If they just tightened their belt a little instead of giving the exuctroids huge bonuses, things would work out. There's too much focus on this stuff in my opinion. It's like when you go to the movies. The focus in the news is all about the box office and little about whether the movie is any good.
     
  7. QualitySeeker

    QualitySeeker Notebook Consultant

    Reputations:
    39
    Messages:
    221
    Likes Received:
    0
    Trophy Points:
    30
    But it's not like the crisis didn't hit big fish out of nowhere.
     
  8. stylinexpat

    stylinexpat Notebook Evangelist

    Reputations:
    0
    Messages:
    454
    Likes Received:
    0
    Trophy Points:
    30
  9. t3rom

    t3rom Notebook Consultant

    Reputations:
    22
    Messages:
    286
    Likes Received:
    0
    Trophy Points:
    30
  10. elfroggo

    elfroggo Notebook Evangelist

    Reputations:
    136
    Messages:
    543
    Likes Received:
    0
    Trophy Points:
    30
    The consumer sales were never that great for Lenovo/Thinkpads. Corporate and business deals were where the money was at. So when they started cutting back on their IT budget, Lenovo suffered as well.
     
  11. hydrocyanic

    hydrocyanic Notebook Evangelist

    Reputations:
    32
    Messages:
    484
    Likes Received:
    0
    Trophy Points:
    30
    picture of bloomberg is so provoking, lol

    dell and hp has a stronger consumer based than lenovo and it is not surprising to see a bigger dip from lenovo as this recession is financial sector oriented=poor business everywhere and no mortgage/lendings will translate into maintaining infrastructure rather than leasing new items

    what lenovo has to do now is to maintain and improve their great reputation of their notebooks to stay on their top for the game when the economy recovers.

    at 0.180 it can be a good buy when it dips .1ish and hold it for a year
     
  12. stylinexpat

    stylinexpat Notebook Evangelist

    Reputations:
    0
    Messages:
    454
    Likes Received:
    0
    Trophy Points:
    30
    Their stock prices in Hong-Kong are almost worthless.. They are about $.20-30 US cents a share :eek:
     
  13. jaredy

    jaredy Notebook Virtuoso

    Reputations:
    793
    Messages:
    2,876
    Likes Received:
    1
    Trophy Points:
    56
    Lenovo has at least attempted to grow their consumer offerings (with some good products). Right now though their thinkpad line isn't really positioned to bring the company back up. A lot of enterprise environments do not really view IT dollars as always that necessary...or they think there can be compromises.

    Right now the only thing really helping the PC market is cheap laptops and netbooks, sort-of.
     
  14. daylove

    daylove Notebook Consultant

    Reputations:
    11
    Messages:
    138
    Likes Received:
    1
    Trophy Points:
    31
    I fear a further cut in quality.
     
  15. THAANSA3

    THAANSA3 Exit Stage Left

    Reputations:
    171
    Messages:
    1,885
    Likes Received:
    0
    Trophy Points:
    55
    Same here.
     
  16. Bungalo Bill

    Bungalo Bill Notebook Deity

    Reputations:
    97
    Messages:
    806
    Likes Received:
    0
    Trophy Points:
    0
    Quick, everyone buy 3 thinkpads before they do something crazy!
     
  17. jonlumpkin

    jonlumpkin NBR Transmogrifier

    Reputations:
    826
    Messages:
    3,240
    Likes Received:
    0
    Trophy Points:
    105
    Sadly, I fear that is the case. Very few people seem willing to pay a premium for quality (especially companies that are begging for bailout money).

    Also, I don't really think cheap laptops/netbooks are helping the PC market. These items are selling at a high volume, but they create little revenue (due to their low price), and have razor thin margins.
     
  18. jaredy

    jaredy Notebook Virtuoso

    Reputations:
    793
    Messages:
    2,876
    Likes Received:
    1
    Trophy Points:
    56
    Correct jon. The sort-of is more for intel, haha.
     
  19. The Fire Snake

    The Fire Snake Notebook Virtuoso

    Reputations:
    426
    Messages:
    2,889
    Likes Received:
    0
    Trophy Points:
    55
    Very sad to here this news. I predict that Lenovo will have to sell the Thinkpad line/name unless things turn around. And if they do, I don't think any other company around today, could do any better.
     
  20. THAANSA3

    THAANSA3 Exit Stage Left

    Reputations:
    171
    Messages:
    1,885
    Likes Received:
    0
    Trophy Points:
    55
    I think I'd have to agree with you here. Maybe they should sell it back to IBM. *fingers crossed*
     
  21. The Fire Snake

    The Fire Snake Notebook Virtuoso

    Reputations:
    426
    Messages:
    2,889
    Likes Received:
    0
    Trophy Points:
    55
    I would seriously doubt that. IBM over the years has been selling off their hardware units/patents to various company since they can't make money on them any more. It seems that in this vicious market with such thin margins, no company can even afford to make a product that is well made(i.e uses good materials, gives a little more for the $) without possibly going out of business. Hence all companies producing the same junk. Therefore, this lead the consumer to only look at the price and to buy the cheapest thing on the shelf. And the cycle continues and takes the pride of ownership away :( :(
     
  22. jaredy

    jaredy Notebook Virtuoso

    Reputations:
    793
    Messages:
    2,876
    Likes Received:
    1
    Trophy Points:
    56
    I don't think IBM is really wanting the division has they focus more on consulting and specialty applications for their products. But you could hope :p.
     
  23. huangker

    huangker Notebook Guru

    Reputations:
    0
    Messages:
    60
    Likes Received:
    0
    Trophy Points:
    15
    Except they have 9.2 billion shares outstanding which means they are worth 2 billion USD. You cant just look at a per share price and come to a conclusion about how expensive they are. Anyways, a lot of stocks are trading below what they are really worth.

    That depends on lots of things, their cash position, capex commitments, ability to roll over debt etc. They had 1.3 billion USD on their balance sheet in September 08. They lost 96 million USD in the December quarter (not entirely apples to apples comparison but dont have cashflow figures). Bottom line is that they have a long way to go before they need to start selling assets.
     
  24. Andrew Baxter

    Andrew Baxter -

    Reputations:
    4,365
    Messages:
    9,029
    Likes Received:
    55
    Trophy Points:
    216
    Except for those buying Apple notebook products. Now, if Apple starts marketing a cheap $400 laptop we'll all know it's curtains for the computer industry and the race to zero profit on cheap crappy laptops is a race already finished.

    Lenovo won't cut quality on their business line, and that's why I'm a fan of business notebooks, they're made to cater to an audience of buyers who are willing to spend money for a high quality work tool. If your work is important to you and your livelihood, you're not going to accept a work tool you use everyday that's second rate stuff made of cheap plastics.
     
  25. huangker

    huangker Notebook Guru

    Reputations:
    0
    Messages:
    60
    Likes Received:
    0
    Trophy Points:
    15
    They are a bit of a niche. Just like the car industry, most models compete on price, but you still have the premium brands.