This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

PC Maker Lenovo Goes for the Gold

Lenovo will compete in next year's Winter Olympic games in Turin, Italy, but the prize is more than a shiny medal.

Lenovo plans to use the event as a launching pad for a global marketing campaign designed to spread the word of its purchase earlier this year of IBM's (IBM) computer unit.

"We believe there is no better stage to launch a brand globally than the Olympic games," said Philippe Davy, vice president of Olympic marketing for Lenovo. "[Turin] will be the coming-out party for Lenovo globally."

While the IBM deal vaulted Lenovo from the ninth-largest PC manufacturer in the world to the third, with just under 10% market share it ranks only fifth in the U.S.

Lenovo's hope is to grow twice as fast as the overall computer market, indicating that it plans on taking significant share from much larger players like Dell (DELL) and Hewlett-Packard (HPQ).

The push comes at a vulnerable point for the PC industry. Intense competition has eroded already thin margins for desktop computers, and it's starting to do the same for higher-margin notebook computers. Further, component prices haven't dropped as much as usual recently because of supply constraints, further squeezing the bottom lines of PC makers.

Lenovo has had its own role in these forces, but company executives indicated that its real efforts in having an impact throughout the world are just beginning.

From now until the start of the Olympics -- and even beyond, since Lenovo is also a prime sponsor of the 2008 Summer Olympics in Beijing -- the company will focus on building awareness of its name, reinforcing the idea that it is focused on innovation, and maintaining the IBM ThinkPad line of notebooks as a top priority.

Indeed, during a conference call on Tuesday, Lenovo executives stressed that the transition incorporating IBM's products -- and people -- has gone smoother than expected. "Our retention rate is higher than when we were part of IBM," said Deepak Advani, chief marketing officer for Lenovo and the former vice president of marketing for IBM's PC unit.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.42 -3.21 -0.02%
S&P 500 1,988.79 +1.78 0.09%
NASDAQ 4,474.0530 +0.3560 0.01%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs