PC or Not PC That Is The Question For Lenovo

Look at the specs for Lenovo’s latest:

“LePhone K860 smartphone featuring Samsung Electronics’ quad-core Exynos 4412 processor, 1GB RAM, Android 4.0, 5-inch 1280 by 720 touch screen and 8-megapixel rear camera.”

see Lenovo offers quad-core LePhone K860.

Lenovo sold 5 million smart phones last quarter and plans to sell 20 million in 2012 with 40 models. Tell me they are not having fun… Lenovo sold 12.8 million x86/amd64 PCs last quarter. 5 million smart phones with specs that would embarrass most PCs from a decade ago and still fit in the pocket are a wonderful addition to Lenovo’s product line. Guess which are more profitable after paying M$ a licensing fee for Wintel PCs. Guess which software has the larger margin, FLOSS or that other OS? Guess which give Lenovo real independence from M$’s interference in their business.

Lenovo had huge growth in profit last year and only 16% of revenue comes from North America. They do sell a lot of PCs in regions where GNU/Linux flourishes.

If Lenovo and other OEMs can make a decent living selling FLOSS on smart phones they have a hedge against any disruption in income due to M$’s penchant for disaster like Vista and “8″. They also have a cushion to use if they decide to ship more GNU/Linux PCs. OEMs would be glad to be paid more for their labour making hardware and less for selling M$’s stuff. Lenovo makes PCs of many kinds. They don’t have to make Wintel PCs.

- Robert Pogson

1 Response to “PC or Not PC That Is The Question For Lenovo”


  1. 1 Clarence Moon Aug 17th, 2012 at 6:21 am

    Guess which…

    You always seem to be guessing, Mr. Pogson. Why is that? My guess is that there is no evidence you can point to instead.

    Lenovo’s income is a rather small potato compared to the big IT companies and their quarterly profits match up with what Microsoft generates in a little more than one business day. And 85% of their revenues are from Windows PCs. Can you guess how likely they are to abandon that?

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My observations and opinions about IT are based on 40 years of use in science and technology and lately, in education. I like IT that is fast, cost-effective and reliable. I do not care whether my solution is the same as yours. I like to think for myself.

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