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One of Lenovo Mobile's newest mobile phones, the O1e, rumored to be powered by Android. Image courtesy Engadget
Lenovo recently announced they will be buying back the mobile phone division they sold nearly 2 years ago, for a cool $200 million.
While viewed as a profit sink in Lenovo’s hands, the mobile division has returned to profitability with new management and will be re-purchased for double what they sold it for in January 2008. The $200 million cash is in addition to stock options.
Lenovo explains the move is part of a strategy to capitalize on the growing mobile internet device (MID) market, which is expected to be worth more than $16 billion in the next 4 years.
Source: [InformationWeek]
Filed under: Lenovo News
Tags: lenovo mobile
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This imho is typical of Lenovo at the moment – they have no foresight, they are simply living quarter to quarter being run by accountants and old Dell execs who don’t quite understand the bigger picture. They were always planning to launch a UMPC with blackberry functionality under the ThinkPad brand at some point so to get rid of the mobile division was just silly.
What I find curious is why there seems to be no repercussions internally against the people who decided to sell it in the first place and effectively cost the company 100M.
I was quite impressed with Lenovos phones at the time when they first took over from IBM but they dont seem to have made much progress in the years since other than spec bumps and i’d not be interested in a phone other than the iPhone.
[...] few weeks ago, Lenovo announced they would be buying back their mobile division for more than twice what it was sold for 2 years ago. SHARETHIS.addEntry({ [...]
Happy Holidays Everyone! All the best for the New Year.
[...] for importing their goods.The Palm news also makes a good deal of sense, considering Lenovo bought back their mobile phone division in November 2009, paying double what they sold it for only 18 months [...]