Lenovo eyes big shift from laptops to services to future-proof its business
- PC giant is now looking to build a competitive software and services business
- Services head Ken Wong says if Lenovo can successfully compete as an IT solutions provider it should be able to double its customer base
Lenovo Group, the world’s top personal computer maker, is trying to remake itself by venturing into software and services as margins on hardware have become razor thin, the head of the group’s Solutions & Services Group (SSG) said.
Ken Wong, president of SSG, said in an interview with the South China Morning Post last week that Lenovo is trying to turn itself from a supermarket with the best ingredients into a chef that can process those materials into ready solutions for clients.
“I think Lenovo in the past 10, 15 to 20 years, we’ve been providing the best ingredients for you to cook: the A-5 Wagyu beef, the best Himalayan mountain salt, the purest water. But we didn’t cook for you,” said Wong. “We gave you the best ingredients with your PC, your server and your phone.”
“But now with SSG, we’re coming in and saying that … we can also help you to cook whatever cuisine you need,” said the 47-year-old at Lenovo’s headquarters in Hong Kong.
Lenovo, which accounts for 24 per cent of worldwide computer sales, last month posted an almost 120 per cent jump in first-quarter profit to US$466 million as revenue rose 27 per cent to US$16.9 billion year-on-year. The company’s net income margin hit its highest level for several years at 2.8 per cent.
