Lenovo story: How a Chinese PC company took over the world thanks to a laptop loved by millions

Lenovo has a long history in the world of computing, but in the West it has only been known since 2005, when in an unprecedented move, they bought the business of IBM’s personal computer division.

Lenovo was founded in 1984 by Liu Chuanzhi and a group of ten engineers in Beijing, but the company was not called Lenovo, but Legend. From 1985 to 2005, for two decades, Legend is a company that manufactures computers for China with features focused on both businesses and consumers in the early years of consumer personal computing.

It was not until 1992 when IBM presented its brand of ThinkPad laptops, focused on businesses and professionals with a 10.4-inch laptop and its famous TrackPointa small red pointer that acts as a mouse and that it still maintains as its trademark.

Until 2005, the company continues to launch personal computers, as well as servers for companies. It is in 2003 when Legend adopts the western name Lenovo (“Le” from Legend and “novo”, an abbreviation of the Latin “novo”, new) in search of international expansion.

Lenovo acquires ThinkPad, the beginning of one of the best acquisitions in the world of technology

The technology giant IBM was looking for a buyer for its computer division. Finally, it was Lenovo who managed to acquire the entire division, including engineers, patents and all kinds of information and brands, such as the well-known ThinkPad, for 1,250 million dollars.

ThinkPad laptops are well known for their durability and repairability, preferred by thousands of companies as they are highly customizable.

In 2005, with the acquisition of IBM’s PC division, William Amelio became the new CEO, replacing Yuanqing Yang, looking for a profile that would take Lenovo to an international market.

In 2008 Lenovo launched one of its legendary laptops, the Lenovo ThinkPad X300. This laptop represents the image of ThinkPad computers, with a classic design, a good keyboard, its TrackPoint red and a design designed so that companies’ IT equipment can repair and update.

In 2009, with an international presence and an established brand, Yuanqing Yang returns to his position as CEO and the founder, Liu Chuanzhi, as chairman of the board of directors.

It can be said that the purchase of IBM’s computer division has been one of the best acquisitions in the world of technology, comparable to the purchase of Instagram by Facebook in its day, because Lenovo has managed not only to multiply its investment, also becoming a key company for the technology sector.

In 2013, Lenovo became the number one company in selling computers, a position it maintains at the end of 2023.

Beyond ThinkPad: Lenovo launches into the gaming and consumer market

ThinkPad is one of Lenovo’s most successful products, but it is totally focused on businesses. To gain access to the consumer market, Lenovo creates new product families.

• IdeaPad: laptops aimed at end consumers, launched in January 2008.
• IdeaCentre: like IdeaPad, it is focused on the consumer market, but in this case they are desktop computers or “all-in-one” devices.
• Legion: its range of gaming products, from laptops, accessories and even portable consoles with a video game entertainment focus, launched at CES 2017.

Lenovo and the mystery of mobile phones: From “LePhone” to buying Motorola

After the smartphone revolution started in 2007 and 2008 by Apple and Google, many technology companies launched themselves into a market where they did not have much experience, but where it was clear that there were new customers to satisfy and with the possibility of accessing a new market with a great future. , despite the fact that Legend had been manufacturing mobile phones since 2002.

In 2010 Lenovo entered the world of smartphones with their first mobile phones called LePhone, creating a new group dedicated to the business of mobile technology and internet-connected devices, such as tablets and Smart TVs. It is a business that works relatively well for them, with a good position in China, but it was in 2014 when they hit the big time.

Motorola, greatly weakened by competition in the Android smartphone market, was rescued by Google in 2011. Just three years later, after keeping some patents, engineering and some other resources, Lenovo bought Motorola in 2014.

Motorola remains an independent company under the Lenovo umbrella and has managed to maintain a business where competition is fierce, especially in the US where it continues to be the third brand with an 11% share, according to data from CounterPoint Research.