Lenovo Group Limited (ADR) (LNVGY): What Does The Future Hold?

It’s that kind of consideration that makes this redesign a thoughtful one. The VGA is thick and unappealing — no good for a thin and light ultrabook. But a company unwilling to sacrifice such a feature is one that deeply understands its target market.

The competition

Lenovo Group Limited (ADR) (NASDAQOTH:LNVGY)’s careful approach to innovation differentiates it from Apple Inc. (NASDAQ:AAPL), which sacrificed an optical drive in the MacBook Air so early that they had to build a new feature to accommodate the change.

Apple Inc. (NASDAQ:AAPL) has never focused too strongly on the enterprise market, although its recent focus on security and encryption might indicate a change of interest. If so, Apple Inc. (NASDAQ:AAPL) could represent a stronger challenge to Lenovo, specifically in the mobile market, where it still holds sway.

Lenovo Group Limited (ADR) (NASDAQOTH:LNVGY)’s own ventures into tablets have been reasonably successful, but with a refresh of the iPad Mini likely this year, Apple stands to reestablish its foothold as the king of mobile — and as a rocket ship of a stock.

And the aforementioned Hewlett-Packard Company (NYSE:HPQ) still represents a strong contender, although the company is reeling in the face of dwindling PC sales. Hewlett-Packard Company (NYSE:HPQ) has been quick to jump on trends, as with the netbook, but has not been successful in sustaining its market share, experiencing a precipitous 24% drop in revenue last quarter.

The company lacks an enterprise laptop with the kind of brand strength that ThinkPad can claim. Its recent refresh of the ProBook line looks promising, but past failures make HP a shaky investment prospect.

The bottom line

Unlike many of its competitors, Lenovo has a deep understanding of the enterprise customer. The ThinkPad line benefits from strong name recognition and a careful managing hand in Lenovo — which mixes innovation and tradition in the perfect proportions for its target market.

The company managed to stay flat in sales last quarter — in contrast with many of its competitors — and thus represents a strong buy recommendation.

The article Lenovo ThinksFuture originally appeared on Fool.com is written by Steven Yenzer.

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