Computer maker Lenovo Group Ltd (聯想), China's only global Olympics sponsor, will end its top-level support after the Beijing Games, the company said.
A brief statement on the company's Web site said it was refining its global marketing effort, but gave no specific reason for the decision to let the relationship expire.
Olympic sponsorship had "helped the company build a global brand," said the statement, dated Tuesday.
"As Lenovo grows, the company's marketing strategy is evolving to pinpoint opportunities that serve strategic needs in targeted geographies," it said.
The Beijing-based company has announced ambitious plans to step up Olympics-related marketing ahead of the Beijing Games in August.
It was the first worldwide sponsor to design the Olympic Torch, which will be carried on the worldwide relay ahead of the Games.
Lenovo also claims to be providing the largest computer hardware commitment to any Olympic Games in history -- about 20,000 machines and peripherals, including desktop and notebook computers to be serviced by a team of 500 technicians.
Sports marketing industry veterans said the decision to end the sponsorship seemed natural given that the Olympic tie-up had been a strategic move at a time when Lenovo was seeking to establish its brand after acquiring IBM Corp's personal computer unit in 2005.
Lenovo, now the world's No. 3 personal computer maker, reported a 12-fold jump in profits in the April-June quarter to US$66.8 million on strong sales in China and the Americas.
"Originally it aligned quite well with the overall strategy. Now that the objective has been achieved, they are looking again at their priorities," said a Beijing-based sports marketing veteran who asked not to be identified.
Global sponsorship is the highest level of Olympic sponsorship and limited to about a dozen companies willing to pay top dollar to associate their brands with the Olympics worldwide.
Lenovo and the International Olympic Committee have refused to disclose how much the company's sponsorship cost, but analysts estimate it paid US$80 million to US$100 million in cash and services for the three-year cycle covering last year's Turin Winter Olympics as well as the Beijing Games.
Olympic global sponsorships remain highly desirable and their price tags continue to climb, partly as a result of the IOC's decision to limit the numbers.
That should appeal to the growing number of Chinese brands, especially large state-owned banks and other companies who have launched spectacular stock market offerings this year.
Although some of those have signed deals with other franchises such as Formula One, the Olympics, with its mass appeal, is still considered the pre-eminent sports marketing opportunity.
"In terms of global brand awareness, there's nothing that comes close to it," said the Beijing sports marketing veteran.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last