0992.HK - Lenovo Group Limited

HKSE - HKSE Delayed Price. Currency in HKD
5.390
-0.060 (-1.10%)
As of 1:51PM HKT. Market open.
Stock chart is not supported by your current browser
Previous Close5.450
Open5.410
Bid5.380 x 0
Ask5.390 x 0
Day's Range5.370 - 5.450
52 Week Range4.720 - 7.580
Volume4,143,736
Avg. Volume32,508,638
Market Cap64.76B
Beta (3Y Monthly)1.12
PE Ratio (TTM)13.71
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield0.28 (5.15%)
Ex-Dividend Date2019-07-11
1y Target EstN/A
  • Global PC shipments grow for second straight quarter amid tariff, supply issues
    MarketWatch

    Global PC shipments grow for second straight quarter amid tariff, supply issues

    Global PC shipments grow for a second quarter in a row, even as the industry struggled with supply issues, according to trade research data Thursday.

  • Bloomberg

    Global PC Shipments Climb 1.1%; Lenovo Keeps Grip on Top Spot

    (Bloomberg) -- Worldwide shipments of personal computers increased 1.1% in the third quarter from a year earlier, fueled by companies upgrading to Microsoft Corp.’s latest Windows software.PC shipments climbed to 68 million units in the period that ended Sept. 30, researcher Gartner Inc. said Thursday in a report. Lenovo Group Ltd., the China-based owner of the ThinkPad lineup of professional devices, held almost 25% of the global market, widening its lead against U.S. rival HP Inc.Computer makers have been concerned by the U.S.-China trade war and Intel Corp.’s chip shortage, but Mikako Kitagawa, a Gartner analyst, said neither played a major role in the third-quarter shipments. “The Windows 10 refresh cycle continued to be the primary driver for growth across all regions,” she said in a statement.HP, the global No. 2, continues to be the largest PC vendor in the U.S. The company has sought customers seeking more expensive machines, such as gaming enthusiasts, to boost profit margins. Dell Technologies Inc., which focuses on selling corporate PCs, rounded out the global top three while Apple Inc. held the fourth spot with 7.5% of the worldwide market.To contact the reporter on this story: Nico Grant in San Francisco at ngrant20@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew Pollack, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Microsoft Is Back in the Phone Game, This Time With Google’s Android Software
    Bloomberg

    Microsoft Is Back in the Phone Game, This Time With Google’s Android Software

    (Bloomberg) -- Microsoft Corp. unveiled a dual-screen, foldable phone that will run on Google’s Android operating system, jumping back into the handset market after product failures and costly writedowns pushed it out three years ago. The phone, called the Surface Duo, has two 5.6-inch screens and will ship in time for the 2020 holiday season, Microsoft Chief Product Officer Panos Panay said at an event in New York Wednesday. With the Duo, Microsoft will seek to seize a share of a massive global market for mobile phones that’s on the cusp of transitioning to new technology with the arrival of 5G networks. Chief Executive Officer Satya Nadella took Microsoft out of the phone business in 2016, three years after the purchase of Nokia Oyj’s handset unit for more than $7 billion failed to arrest Windows’ sliding share in the smartphone market.Since then, company executives have repeatedly said Microsoft wouldn’t re-enter that market unless it had something different to offer. A return to phones this time has Microsoft relying on software rival Google’s Android for the operating system. Android powers the large majority of smartphones around the world. “This is an aggressive move that was not expected by the Street,” said Wedbush Securities analyst Daniel Ives. “We view it as a smart strategic gamble by Nadella to jump back into the deep end of the pool on the smartphone front.’’  The new phone makes sense for Microsoft because any company that's serious about hardware needs to have a mobile play, said Ryan Reith, an analyst at research firm IDC. The most interesting thing about the announcement is the dual-screen form, Reith said. It's likely Microsoft made that choice because a regular phone wouldn't have stood out as much among the dozens of alternatives already out there, he said.The move also draws Microsoft further into a hardware business some investors still haven’t warmed to. Microsoft shares were down 2.2% to $134.01 at 12:31 p.m. in New York. Nadella has been quick to embrace rival products where it advances Microsoft’s goals, such as apps for Android and Apple Inc.’s iOS, and using the Linux operating system within Windows and Azure cloud products.The European Union’s antitrust ruling against Google last year over the way it puts search and web-browser apps onto Android devices also means Microsoft would be freer to merge its own apps with Android. Since the EU’s case, it's now possible for a phone maker to use Android and the Play app store and still preinstall all of its own services on the homescreen.Microsoft and Google make competing sets of productivity software, and it remains to be seen which company's apps will be preloaded on the phone. Still, it's unlikely the handset will become a major battleground for the two, Reith said.“Both risk their productivity suites competing with each other but there's more short-term opportunity for them collaborating,'” he said.Other announcements made at Microsoft’s annual hardware event include a new Surface Neo laptop with a 360-degree hinge and two 9-inch screens so it can open like a book or like a laptop. The device has a removable, flipable keyboard, which magnetically seals to the back of the device, along with a pen. It will run a new version of Windows 10 designed for dual screens called Windows 10X. The new foldable Surface products come as companies like Samsung Electronics Co. and Huawei Technologies Co. have also rolled out phones with similar features, albeit after some initial design difficulties, and PC makers like Lenovo Group Ltd. have shown computer prototypes with folding screens. Microsoft also introduced a completely redesigned version of its Surface Pro hybrid tablet-laptop that's thinner, lighter and faster than previous models and runs on a customized processor with Microsoft and Qualcomm Inc. technology. Called the Pro X, the device also has a custom artificial intelligence processor and better battery life. The device’s pen gets stowed in the tablet’s cover where it wirelessly charges. Microsoft also showed off white, circular Surface earbuds that have touch controls to enable the user to take calls and switch music. They will be available later this year starting at $249.Redmond, Washington-based Microsoft relies on its Surface devices to boost sales as well as show off its software and attract customers to its family of products. Many of the products have been well reviewed, though Microsoft lags behind Apple and other hardware vendors in popularity. Microsoft held a 3.6% share of the worldwide tablet market in the second quarter of this year, making it the No. 6 vendor with shipments of nearly 1.2 million units, according to IDC. That represents growth of 48% compared with a year earlier. Apple by comparison was No. 1 in with a 38% share.Microsoft also presented a new laptop and an update to the existing Surface Pro device.The new Surface Laptop 3 will have an aluminum exterior finish, “instant on” and a bigger trackpad. The device will be available with a 15-inch screen and fast charging. Panay said the product is three times more powerful than Apple’s Macbook Air. The devices can be pre-ordered starting Wednesday and will be available Oct. 22 at $999 for the 13-inch and $1,199 for the 15-inch. The Surface Pro 7 comes out the same day and starts at $749.Microsoft’s device revenue topped $6 billion in the year that ended June 30, including Surface units and PC accessories, according to its annual filing. The company uses the devices to attract corporate users to its hardware and programs, while Apple dominates the consumer part of the market, according to Wedbush’s Ives. “Surface represents the tip of the spear of the broader Microsoft ecosystem as Microsoft still needs a horse in the race on next generation consumer hardware and devices,” Ives said. “While some investors continue to question this investment as good money going after bad endeavors on Surface, we strongly disagree as this remains a mind and market share strategic gamble.”\--With assistance from Kiley Roache.To contact the authors of this story: Dina Bass in Seattle at dbass2@bloomberg.netGerrit De Vynck in New York at gdevynck@bloomberg.netTo contact the editor responsible for this story: Molly Schuetz at mschuetz9@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • InvestorPlace

    Amazon Stock Channels Apple’s Magic Through Sept. 25 Event

    After watching Apple (NASDAQ:AAPL) get a bump in its stock price following its annual hardware event, Amazon (NASDAQ:AMZN) stock is aiming for the same result.Source: Jonathan Weiss / Shutterstock.com Both companies are chasing Microsoft (NASDAQ:MSFT) in the race to be the richest of the "Cloud Czars." Apple's market cap is over $992 billion while Amazon's market cap is at $891.6 billion. Microsoft stock is king of the hill at just over $1 trillion.Amazon shares hit an all-time high over $2,000 in July but have since traded as low as $1,750. AMZN stock opened Sept. 16 at $1,824.02. Government antitrust efforts concerning its Marketplace have hurt the stock. But operating cash flow, which Amazon calls its key metric, has yet to slow. It came in during the June quarter at over $9 billion, up from $7.5 billion a year ago.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What's in StoreLater this month, on Sept. 25, Amazon will host its second annual product-focused press event. Several outlets predict that once again, this event will focus on its Alexa voice interface. The Alexa interface is becoming as important to Amazon as the iPhone is to Apple, because its services tie people into Amazon's cloud and e-commerce store.The most anticipated improvement is better sound quality, which could lead customers to upgrade their devices. The interface could also feature connectivity to more Amazon products, expanding its reach throughout consumers' homes. * 7 Tech Stocks You Should Avoid Now Amazon has been seeking hardware partners for Alexa in companies like Anker, Toshiba (OTCMKTS:TOSBF), JVC Kenwood (OTCMKTS:JVCZY) and Grundig. The result should be more support for Fire TV, which is competing for market supremacy with Roku (NASDAQ:ROKU).One product that would be a surprise is an Amazon phone. The company's Fire Phone, launched in 2014, was a debacle. Amazon has since taken to selling phones from Lenovo (OTCMKTS:LNVGY) at a discounted price, loaded with Amazon shopping services and advertising.Another possibility could be improved Kindle e-book readers. Amazon has a virtual monopoly on both e-books and readers. The latest versions are distinguished from the Fire tablet, which also supports Kindle books, by their front-lit, high-resolution displays. Amazon Stock Needs Some CatalystsAmazon needs some new earnings catalysts as it faces a chorus of political push back.While Amazon remains just over half the size of Walmart (NYSE:WMT), the retail giant is successfully portraying itself before regulators as a poor underdog, even while it copies Amazon features like its marketplace and one-day delivery.This is getting results. In addition to a federal investigation of its marketplace, politicians are now questioning Amazon's treatment of delivery drivers. Many are classified as independent contractors, like Uber (NYSE:UBER) drivers. Others are employed by third-party contractors, meaning Amazon takes no responsibility for their treatment.Amazon is expanding employment in Boston, Chicago, Dallas and Nashville, as well as at its Seattle headquarters and "HQ2" operation near Washington DC. The company has spread its technology development to 18 different cities. The Bottom Line on AMZN StockAmazon's explosive growth has it competing with companies across the media, marketing, technology and retail landscapes, from FedEx (NYSE:FDX) to Walmart, and from Apple to Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).It's not just competing in the marketplace with these companies. Increasingly it's competing in Washington, and in other nation's capitals, as companies threatened by its growth seek government protection.For investors, it means they can now get Amazon for just 75 times last year's earnings, and less than three times its expected 2019 revenue of $331 billion. Given that it's still growing at rate of 30% per year, and that profits are no longer a rounding error, that's looking cheaper by the day.As has been said about Apple, Amazon is a stock you hold for the long run. Ignore the noise.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT, AAPL and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Amazon Stock Channels Apple's Magic Through Sept. 25 Event appeared first on InvestorPlace.

  • The Trade War Spurs China’s Technology Innovators Into Overdrive
    Bloomberg

    The Trade War Spurs China’s Technology Innovators Into Overdrive

    (Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.In Shenzhen’s glitzy financial district, a five-year-old outfit creates a 360-degree sports camera that goes on to win awards and draw comparisons to GoPro Inc. Elsewhere in the Pearl River Delta, a niche design house is competing with the world’s best headphone makers. And in the capital Beijing, a little-known startup becomes one of the biggest purveyors of smartwatches on the planet.Insta360, SIVGA and Huami join drone maker DJI Technology Co. among a wave of startups that are dismantling the decades-old image of China as a clone factory — and adding to Washington’s concerns about its fast-ascending international rival. Within the world’s No. 2 economy, Trump’s campaign to contain China’s rise is in fact spurring its burgeoning tech sector to accelerate design and invention.The threat they pose is one of unmatchable geography: by bringing design expertise and innovation to the place where devices are manufactured, these companies are able to develop products faster and more cheaply.“Ninety percent of the world’s headphones are produced in China, 90% of China’s headphones are produced in Guangdong, and 90% of Guangdong’s headphones are made in Dongguan,” explains SIVGA co-founder and product chief Zhou Jian, an 18-year audio industry veteran who has done work for global brands like Sennheiser Electronic GmbH & Co., Sony and Bose. His company is based in Dongguan because, he says, “Dongguan’s industrial chain is near perfect.” Zhou estimates there are hundreds of specialist factories in the area focusing on a particular component, such as screws, and his network of contacts among those suppliers has been invaluable. It was “support from these good friends” that got SIVGA, short for Sound Impression Via Genuine Artwork, off the ground.Now employing more than 30 people and offering a premium brand called Sendy Audio, SIVGA sells a luxury pair of $599 headphones called Aiva. Featuring handcrafted wooden ear cups and intricately detailed metal grilles, the Aiva have shipped more than 2,000 units into a niche, high-margin market that’s usually reserved for U.S. boutique outfits like Audeze and Campfire Audio. “As far as we know, we are the only company in Dongguan with a woodworking department,” Zhou says, while also pointing out that at SIVGA “the development time is short and many decisions can be made on the spot.” This instant design responsiveness is a signature feature of China’s new tech upstarts, and Zhou sums it up with an old Chinese proverb: “small boats change course easier than big boats.”DJI is the pioneer that proved Chinese tech companies could aspire to be more than just manufacturing contractors or fast copiers. “DJI leads the industry with features like automatically avoiding obstacles in flight, which it implemented first,” notes Techsponential lead analyst Avi Greengart. “Rivals in the U.S., France and Taiwan have not been able to catch up.” DJI’s lead is based on the same geographic synergies as SIVGA’s. When a U.S. rival suffers a manufacturing hitch or defect, its ability to identify and react to the problem is hampered by the distance between its designers and manufacturers. DJI doesn’t have that problem, which has helped propel it to being the top drone maker in the world.“These are Chinese companies that want to be industry leaders and innovators. DJI and Insta360 are perfect examples of that movement,” says Anshel Sag, mobile industry analyst for Moor Insights & Strategy. “A big part of it comes from the entrepreneurial spirit of Shenzhen.”Like Dongguan, which this year saw a large new Huawei Technologies Co. campus open, Shenzhen is a nexus of component makers and suppliers eager to find new customers for their wares. The cacophonous Huaqiangbei bazaar in the city exhibits a wild array of gadgets from smartphone-electric shaver hybrids to neon-lit unicycles with Bluetooth speakers. That commoditized fray offers inspiration but also an impetus to rise above it with genuine innovation. The successful companies are the ones who make the most of the rabid production and iteration around them.“In Shenzhen, there’s a well-established supply chain system,” says Insta360 founder Liu Jingkang. “From a research perspective, in-house R&D may only contribute 60% of a product, the rest needs to be finished in factories.” The CEO of OnePlus, another company based in the city, has expressed pride in its ability to prototype new devices at great speed because he’s just a 45-minute drive away from its assembly lines.Even without being Apple Inc., Chinese companies are now building world-class, premium products, though China’s signature feature of undercutting the established market remains. Whether or not a Chinese company is first to a technology, it makes sure to be first to a breakthrough price.Backed by Xiaomi Corp. in 2014, Huami is responsible for creating the massively popular Xiaomi Mi Band, which has flooded the China market at a $20 price. The Mi Band offers most of the features of a Fitbit fitness tracker — including step counting and heart-rate monitoring — at a fraction of the cost. After expanding to sales in the U.S. and launching its own Amazfit brand, Huami is now shipping in excess of 5 million devices per quarter, and its chief executive talks openly about “taking out” at least some of its larger rivals, including Apple and Samsung Electronics Co.“The operating models for Garmin and other European and U.S. smart device vendors are flawed. Their retail price is very high,” Huami CEO and founder Wang Huang says. “You will only be able to sell very expensive products to a very small group of customers because mainstream and lower-end markets will be eroded by companies like us.”Evidence for the Huami chief’s words abounds in the smartphone market, where the top group of manufacturers is increasingly dominated by Chinese names like Xiaomi, Oppo and Huawei. 2018 saw these brands make major inroads into the European market, relying on better pricing and faster feature introductions. Xiaomi “consistently produces budget flagship phones with first-to-market implementations,” says Techsponential’s Greengart. Along with SIVGA, Huami and Insta360, they’re following in the footsteps of companies like Lenovo Group Ltd., which was among China’s early breakout successes after buying IBM Corp.’s PC business in 2004. Their global ambitions and innovation pose a serious threat to the leadership of a plethora of U.S. tech products in areas from design to functionality, whether they be GoPro cameras, Apple iPhones or HP laptops.China’s rapidly rising tech creators are not without commercial savvy. Many of them are planning to seek capital on Shanghai’s new trading venue for startups, locally known as the Star board. Ninebot Inc., the Xiaomi-backed outfit that acquired Segway in 2015, aims to raise $300 million there. In unicorn territory, the Google-backed Mobvoi, which creates natural language translation algorithms for its Wear OS smartwatches, is also said to be seeking a high-value listing on the Star market.Royole, the startup that earned a measure of notoriety by beating Samsung to selling the world’s first foldable device in 2019, has managed to secure a deal with Louis Vuitton that will see the two companies putting flexible screens on handbags of the future. Like Huami initially leaning on the Xiaomi brand to build itself up, Royole stands a chance to be a luxury goods player with the help of a bigger company. The differences between California’s Silicon Valley startups, which have tended to do a better job of marketing and deal-making, and China’s new generation of homegrown businesses are gradually disappearing.How and Why the U.S. Says China Steals Technology: QuickTakeAmerican critics, such as President Donald Trump, commonly point to a track record of Chinese companies copying features from abroad, and one of their bits of evidence is the way Apple’s iPhone software and design seem to be habitually recreated by Huawei, Xiaomi and others. There’s not much that a Western company can do in such situations. When Segway filed a complaint against a number of Chinese brands for IP violations, it ended up conceding the fight and getting acquired by one of its defendants.The observable change now is that a new generation of innovative companies aren’t waiting for someone else to show them the blueprint. China’s rapid ascent in innovation goes beyond anecdotal evidence from startups like DJI and Huami, and the country’s corporations now rank among the world’s most prolific patent applicants.“The trend of China moving to high-end manufacturing, research and design is unstoppable,” said Jia Mo, a Shanghai-based analyst with consultancy Canalys.To contact the reporters on this story: Vlad Savov in Tokyo at vsavov5@bloomberg.net;Gao Yuan in Beijing at ygao199@bloomberg.net;Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Vlad Savov, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Lenovo Group (HKG:992) Takes On Some Risk With Its Use Of Debt
    Simply Wall St.

    Lenovo Group (HKG:992) Takes On Some Risk With Its Use Of Debt

    Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

  • Lenovo slims down its Google smart display
    TechCrunch

    Lenovo slims down its Google smart display

    Before there was the Nest Home — heck, before there was even the Google HomeHub — there was the Lenovo Smart Display

  • The New Tech Paradigm Won't Save You
    Bloomberg

    The New Tech Paradigm Won't Save You

    (Bloomberg Opinion) -- Back in the day, PCs were hip and investors chased computer stocks to sky-high valuations. Everyone was buying a desktop, and then a laptop, and the companies that supplied them could do no wrong.Then came the smartphone. We all know to blame Apple Inc. for the end of the PC era. Though Steve Jobs didn’t invent the “phone + internet” mash-up, the iPhone spurred competitors to make such devices useful and customers took to them with glee. A decade-long smartphone boom followed.Take a look at the recent share price performance of handset makers and there’s not much left to be gleeful about. As handsets got boring, so too did the shares of the companies that relied on them for revenue. HTC Corp. and Xiaomi Corp., two of the few firms left that focus on handsets, have seen their shares plummet in the past year. PC makers, on the other hand, have been a little more exciting.Yet if you divide the universe of smartphone and PC makers in two, you’ll discover something interesting: Those that primarily focus on corporate customers or lead the market in a key non-consumer business are outperforming those that get a larger slice of revenue from smartphones and consumer PCs. Since Dec. 21, when Dell Technologies Inc. started trading again after a take-private deal in 2013, its shares jumped 21%. International Business Machines Corp., Samsung Electronics Co. and Hewlett Packard Enterprise Co. have all climbed since that date. (2) By contrast, LG Electronics Inc., Lenovo Group Ltd., HTC, HP Inc., Acer Inc. and Xiaomi all dropped.  The first major outlier is Apple. I suspect that’s because fund managers sitting on piles of cash realized that it probably makes sense to put money into companies with fat margins and a cult following, even if it’s lost a little luster. ZTE Corp. also did well, but that’s mostly because it’s recovering from being at the wrong end of U.S. national-security policy.Instead of looking at PCs versus smartphones, a paradigm that worked well for around a decade, the better way for investors to divide the technology-hardware sector is consumer and enterprise. The two HPs – Enterprise and Inc. – serve as the perfect example. HP Inc. gets 60% of its revenue from desktop and notebook PCs, while HP Enterprise sells servers, storage and networking services. HP Enterprise is up 10% while HP Inc. fell 7% over the period. IBM is up 22%, Acer is down 13% and Xiaomi has fallen 36%. The lines do get a little blurred. Lenovo, for example, is also in the server and smartphone businesses, and Dell gets around 11% of its revenue from consumer PCs. Having divided their investible universe along these new fault lines, however, punters would be foolish to believe that the bull-run in enterprise will continue unabated. Both HPE and Dell last week raised their full-year earnings forecast, spurring shares to rise. In reality, that bottom-line strength appears to come from better margins and cost control rather than a rosier outlook for revenue. “We’ve tried to position the company to be successful in any economic environment,” Dell CFO Tom Sweet told Bloomberg News. That kind of attitude deserves the 10% single-day spurt the stock received. But cost control can only go so far. If a global economic slowdown and the trade war don’t abate, then not even fiscal pragmatism can save earnings.Sell-side analysts are adjusting accordingly. They’ve trimmed most companies’ 2019 revenue forecasts over the past six months, as well as next year’s EPS estimates.By examining more closely the end-market and customer base for each company, investors will find it easier to sort likely winners from losers. In the face of even bigger problems for the economy, however, a new analytic framework won’t change the fact that tough times are still ahead.(1) That's when Dell shares started trading. The rise/fall divide since that date is somewhat coincidental, but the wider point still stands: Enterprise has largely outperformed consumer.To contact the author of this story: Tim Culpan at tculpan1@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Better Buy: Sony Corp vs. Lenovo Group Ltd
    Motley Fool

    Better Buy: Sony Corp vs. Lenovo Group Ltd

    Is Japan's leading consumer electronics and gaming console company a better investment than China's leading PC maker?

  • Globalfoundries Sues TSMC; Seeks Import Ban on IPhone Parts
    Bloomberg

    Globalfoundries Sues TSMC; Seeks Import Ban on IPhone Parts

    (Bloomberg) -- Globalfoundries Inc. sued larger rival Taiwan Semiconductor Manufacturing Co. for using its patented chip technology and requested a U.S. trade agency impose import bans that could roil the market for crucial components of a huge swath of electronics, including the iPhone.The U.S.-headquartered chipmaker, which like TSMC manufactures semiconductors for other companies, on Monday filed patent-infringement complaints at the U.S. International Trade Commission in Washington, as well as civil lawsuits at federal courts in the U.S. and Germany.The complaints cite TSMC and customers including Apple Inc., Broadcom Inc., Qualcomm Inc., Xilinx Inc., Nvidia Corp. and their device-maker customers including Cisco Systems Inc., Google and Lenovo Group Ltd. TSMC makes chips designed by companies like Qualcomm and Nvidia that are then used in devices including Apple iPhones, Lenovo laptops and Cisco routers.The broad-ranging legal assault threatens to disrupt the supply of everything from smartphones to personal computers to vital infrastructure like switches and routers that are the backbone of the internet. It highlights the importance of TSMC as a maker of the components that keep modern electronics running. It also comes at a time when the worldwide supply chain is being disrupted by a trade dispute between China and the U.S.TSMC spokeswoman Elizabeth Sun said her company hasn’t been served with any court papers and it isn’t familiar with the details of the suit."TSMC has always respected intellectual property and we have developed all our technologies by ourselves," Sun said.Globalfoundries is positioning the case as U.S. and European inventions being illegally used by an Asian company that has an increasing stranglehold on crucial parts of the technology industry.“Someone had to do something, the world needs a competitive semiconductor industry,” said Sam Azar, senior vice president of corporate development at Globalfoundries. “We’re using courts in the U.S. and Europe that care about protecting manufacturing.”Globalfoundries has factories in upstate New York and Dresden, Germany. Its headquarters is in Silicon Valley. The closely held company is owned by Mubadala, the investment arm of the government of Abu Dhabi.Globalfoundries, like other so-called contract chipmakers, has struggled to keep pace with TSMC whose factories are now rated the best in the industry. The U.S.-based company is seeking "substantial" damages from its Taiwanese rival which it alleges is using Globalfoundries’ technology to help it win tens of billions of dollars of sales, it said in a statement.German courts work quickly, and are known for ordering a halt of imports of products even before litigation is completed to protect patent owners. The ITC in Washington, which protects U.S. markets from unfair trade practices, also has a reputation for speed, with investigations completed in 15 to 18 months. It has the ability to block products entering the world’s largest economy. It has occasionally opted not to do that if it decides a ban would be counter to the public’s best interest. The American civil suits, filed in federal courts in Delaware and Texas, would take longer but could result in large damage awards.Throughout the complaint, Globalfoundries cited products including iPhones, AirPods, Apple TV and iPad models. It also mentioned Cisco’s switch boxes as using infringing chips and Lenovo computers that are based on Nvidia graphics chips.Globalfoundries argued that a ban would not hurt consumers because Samsung Electronics Co. is a licensee and other companies such as Sony Corp., LG Electronics Inc. and Vizio Inc. are not included in the litigation. That means there will be an adequate supply of smartphones and other consumer electronics, it said in the court filings. Samsung and Globalfoundries had a chipmaking technology partnership.The patents Globalfoundries is asserting cover the fundamentals of how semiconductors are manufactured. Some are U.S. patents and others are European covering esoteric but important areas like “structures of and methods and tools for forming in-situ metallic/dialectric caps for interconnects.” They involve the most advanced technique, called 7 nanometer, that TSMC is currently using.Meanwhile, GlobalFoundries announced a year ago that it would halt development of 7-nanometer chips and focus on more mature technology as the company struggles to match TSMC’s annual capital expenditure of some $11 billion.Globalfoundries’ Azar said his company wants TSMC to stop using the patented technology, which will be difficult to work around, or ask for a license and pay for the right to continue using the inventions.Companies like Apple, Cisco and Nvidia are named in the complaints because TSMC doesn’t import the chips or sell them to consumers; the only way to stop the chips from entering the U.S. and Germany is to block the products that use them.Trump Aides Say He Has Power to Force Companies From China (2)Global Foundries filed the complaint after U.S. President Donald Trump issued a tweet on Aug. 23 saying American companies “are hereby ordered to immediately start looking for an alternative to China.” His administration claims he has the authority to impose such an order though trade experts disagree.(Updates with Samsung and other companies not included in the litigation in 13th paragraph.)\--With assistance from Debby Wu.To contact the reporters on this story: Ian King in San Francisco at ianking@bloomberg.net;Susan Decker in Washington at sdecker1@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Alistair Barr, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Alibaba-Backed AI Startup Sales Tripling Paves Route to IPO
    Bloomberg

    Alibaba-Backed AI Startup Sales Tripling Paves Route to IPO

    (Bloomberg) -- Megvii Technology Ltd. for the first time revealed the stunning growth fueled by a nation’s obsession with security.The Alibaba Group Holding Ltd.-backed startup tripled revenue to 949 million yuan ($133 million) in the first half. It generated more than 73% of those sales from AI services for major clients like government agencies, hospitals and real estate developers, the company said in a filing to the Hong Kong Stock Exchange.Seven-year-old Megvii is said to be angling to raise as much as $1 billion in its initial public offering, becoming the first of China’s fast-rising AI stars to debut and beating Sensetime Group Ltd. to the punch. Its share sale however will run up against a host of uncertainties from violent pro-democracy protests that’ve gripped Hong Kong to the Trump administration’s increasingly aggressive campaign to contain China’s tech champions.Megvii is moving forward even as other companies pump the brakes on their Hong Kong listing ambitions, wary of the turmoil. Its fundraising will further Beijing’s effort to lead the sector by 2030. That’s in turn prompting the Trump administration to sound the alarm about investment into Chinese technology.Megvii generates the bulk of its revenue from products that combine software and sensors to help government agencies and other clients enhance public safety and optimize traffic management. Sales from that business, which it labeled “city IoT solutions,” jumped 270% to 694.8 million yuan in 2019’s first six months. Megvii said it served 112 cities in China, 38% of the country’s total, as of June. It posted 5.2 billion yuan in losses for the first half, while adjusted profit reached 32.7 million yuan.‘IPOs‘ have been pretty disappointing in the past few months, but since AI is a hot category at the moment it could gain more traction,” said Mark Tanner, founder of Shanghai-based research and marketing company China Skinny.Read more: China AI Startup Files for Hong Kong IPO Despite ProtestsThe filing kicked off the formal process for an IPO, though it could be months before Megvii’s actual debut. The offering faces particular challenges. Washington has upped its rhetoric about inspection of investment into Chinese technology, which may erode the interest of U.S. money managers in the country’s AI startups.In a list of risk factors, Megvii warned of possible economic and trade restrictions similar to curbs imposed on Huawei Technologies Co. Should that happen, it would prevent the company from procuring technology, and impair its ability to develop solutions. The company stressed that it’s made sure it’s compliant with relevant restrictions, while making contingency plans to minimize the negative impact of potential curbs.Read more: Trump Aides Say He Has Power to Force Companies From China (2)Megvii also warned that sanctions on sales of American technology to Huawei may roil industries from consumer electronics to telecommunications. “Prolonged restrictions against Huawei could cause a turmoil to all such industries, which may in turn materially and adversely affect our business,” it said.Megvii also sells face-scanning systems to companies from iPhone-maker Foxconn Technology Group to Lenovo Group Ltd. and Ant Financial, the payments affiliate that supports Alibaba’s e-commerce business. The company generated 207.2 million yuan from the segment it dubs “personal IoT solutions,” or 21.8% of its revenue. Its third major business line, solutions for logistics that deploy AI-empowered robots and sensors, made up some 5% of revenue.Megvii counts Alibaba and its financial affiliate Ant Financial, Lenovo Group Ltd. and China Mobile Ltd. as strategic investors. Alibaba indirectly held 14.3% of its shares, while Ant Financial indirectly held 15.1%.Read the IPO filing here.(Updates with analyst’s comment in the fifth paragraph)To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • China AI Startup to File for Hong Kong IPO Soon Despite Protests
    Bloomberg

    China AI Startup to File for Hong Kong IPO Soon Despite Protests

    (Bloomberg) -- Chinese artificial intelligence startup Megvii is filing documents soon for a Hong Kong initial public offering that could raise as much as $1 billion, people familiar with the matter said, proceeding despite a market downturn spurred by pro-democracy protests across the financial hub.The owner of facial-recognition platform Face++ plans to submit an IPO filing to the Hong Kong Stock Exchange as soon as Friday, one of the people said, asking not to be named because the matter is private. Megvii declined to comment.Megvii is moving forward even as other companies pump the brakes on their Hong Kong listing ambitions, wary of months of protests that have gripped the city. Alibaba Group Holding Ltd., a backer of Megvii’s, is among those that are gunning for a Hong Kong listing but have held back to gauge investors’ reception.Megvii’s offering may face particular challenges. It would be the first in a coterie of Chinese AI companies to go public, raising money that would help further China’s effort to lead the sector by 2030. Donald Trump’s administration has raised the alarm about China’s ambitions in technology, which may erode the interest of U.S. money managers in the country’s AI startups."It’s a bit political," said Mark Tanner, founder of Shanghai-based research and marketing company China Skinny. “Trump’s big concern is that China has the aspiration to be the leader in AI.”Megvii’s filing will kick off the formal process for an IPO, though it could be months before its actual debut. Megvii competes with SenseTime Group Ltd. -- also backed by Alibaba -- in facial and object recognition technology and Internet of Things software.The seven-year-old outfit now provides face-scanning systems to companies from iPhone-maker Foxconn Technology Group to Lenovo Group Ltd. and Ant Financial, the payments giant that supports Alibaba’s e-commerce business. Its facial recognition technology has provided verification services to more than 400 million people, Megvii said in a statement in January.Beyond commerce, the company is also building software for sensors and robots. And the Chinese government is a client: Megvii’s AI technology has been used by authorities in more than 260 cities and helped police arrest more than 10,000 people, it said in January. The company last raised $750 million in a Series D financing round in May from investors including China Group Investment, ICBC Asset Management (Global), Macquarie Group and a unit of the Abu Dhabi Investment Authority. Its other backers include Boyu Capital, Ant, SK Group, Foxconn, Qiming Venture Partners and Sinovation Ventures.Megvii could have a first mover’s advantage."IPOs have been pretty disappointing in the past few months, but since AI is a hot category at the moment it could gain more traction," said Tanner.(Adds analyst comment in the fifth paragraph.)To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Lenovo Is Using Its Head: Partnering With VR Headset Pioneer Oculus Is Just One of Its Smart Moves
    Motley Fool

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    Reuters

    Lenovo warns of price hikes to absorb U.S. tariffs, shares slide

    Lenovo's warning amid mounting business uncertainty due to the U.S.-China trade war cast doubt on its sales outlook and took the shine off forecast-beating quarterly results where robust PC sales helped the company more than double its profit. U.S. President Donald Trump said this week that he would postpone imposing an additional 10% tariff on Chinese-made products including tablets and laptop computers until December, but would still impose the tariffs on desktops from September. "Retail prices for products like PC and smartphones will increase if (U.S.) tariffs increase," Lenovo Chairman Yang Yuanqing told an earnings call on Thursday.

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  • Reuters

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    Chinese PC maker Lenovo Group reported a more than two-fold jump in first-quarter profit on Thursday, beating analysts' estimates thanks to robust sales of personal computers. U.S. President Donald Trump said this week that he would postpone imposing an additional 10% tariff on Chinese-made products including tablets and laptop computers until December, but would impose the tariffs on desktops from September. The global PC market grew 1.5% in the June quarter after falling for two consecutive quarters, as threats of increased U.S. tariffs on Chinese goods prompted some manufacturers to frontload shipments, industry analysts said.

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    (Bloomberg) -- Worldwide shipments of personal computers increased 1.5% in the second quarter, fueled by businesses upgrading to the latest Windows software from Microsoft Corp. China-based Lenovo Group Ltd. held the No. 1 spot over U.S. rival HP Inc. amid a trade war between the two countries.PC shipments increased to 63 million units in the period ended June 30 from 62 million in the quarter a year earlier, researcher Gartner Inc. said Thursday in a report. Robust corporate demand offset a decline in notebook shipments, Gartner said. Lenovo shipped almost 16% more PCs year-over-year, giving the company a quarter of the global market.Industry research firm IDC estimated PC shipments climbed 4.7% in the most recent period, with vendors putting out 65 million devices worldwide."The threat of increased tariffs led some PC makers to ship a surplus of desktops and notebooks, thereby artificially propping up the PC market during the second quarter," said Jitesh Ubrani, a research manager at IDC.Computer makers have struggled to navigate global trade tensions. They already operate with low profit margins, and many of them have shuffled their supply chains in response to U.S. tariffs on some components. Dell Technologies Inc. and HP are reportedly considering moving 30% of their notebook production out of China.Dell came in third place in the global PC race, with 17% of the market after HP’s 22%. Apple Inc.’s PC shipments narrowly declined in the most recent period, and the company held the fourth spot with about 6% of the market.(Updates with estimates from IDC in third paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at ngrant20@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew Pollack, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Lenovo ThinkPad X1 Carbon 2019 Review
    Engadget

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