Lenovo said that its agreement with Microsoft to buy software like Windows and Office worth over $1 billion in this fiscal year has been signed on, successfully.
Some time after the reports came out, Lenovo’s stock prices declined 0.34 percent (is it related to the reports?).
Lenovo did not disclose full details of the agreement. They said that the details are being worked out.
Lenovo made history in 2005, by becoming the first branded PC assembler to preinstall Windows on all of its PCs that made their way into the Chinese market. This is a significant move, considering that the majority of PCs sold in China are naked(without software), which makes it easier to load pirated software. By selling PCs with preinstalled OS, Lenovo is actually helping Microsoft by cutting piracy rates in China. Something tells me the anti-piracy efforts got the nod from Microsoft, and it helped Lenovo clinch the deal.
But ofcourse, this is a win-win situation, but MS stand to gain more- thanks to boosted sales of original OS.
Last year, a similar agreement, worth over $1 billion, was inked. This is more or less a slightly up-tuned deal, with higher prices. According to Lenovo, last year’s deal was very well-executed. They expect it to be as smooth, if not better, this time.
Some history
Lenovo catapulted to fame following the acquisition of IBM’s PC and laptop business. This gave the then struggling manufacturers a crucial boost. They have not had to turn back again, and have steadily progressed, so much so that they are actually competing with Taiwanese company, Acer, for the third spot in world PC manufacturer rankings, behind Dell and HP.
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