Lenovo to end Olympic sponsorship after 2008 Beijing Games

BEIJING -- Computer maker Lenovo, China's only global Olympics sponsor, will end its relationship with the Games after next year's 2008 Summer events in Beijing, the company said.

No explicit reason for the decision was given in a brief statement on the company's Web site, which said it was refining its global marketing effort.

Lenovo's Olympic sponsorships have "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."

The decision marked a reversal for Lenovo, which has announced ambitious plans to step up Olympics-related marketing as the Beijing Games approach.

There are different grades of Olympic sponsorship, of which global is the highest. 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 that covers the 2006 Turin Winter Olympics and the Beijing Games.

The company was the first worldwide sponsor to design the Olympic Torch to be carried on the worldwide relay ahead of the games. It 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.

The company announced in April that it was launching a global unit to promote sales to individuals and small businesses in an effort to reduce reliance on big corporate clients.

Beijing-based Lenovo revamped its struggling bid to create a global brand name after acquiring IBM Corp.'s personal computer unit in 2005. Lenovo Group Ltd., 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.