News & Observer | = newsobserver.com |=20 Lenovo boosts recycling to generate revenue

Leo Velasquez, left, and Shirley Ortiz remove = electronics=20 parts so they can be broken down further at electronics recycler GEEP. = Plastics=20 and metals are pulverized, below. Lenovo is working with recyclers to = reuse=20 junked PCs.=20

Staff Photos by = Harry=20 Lynch

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Jonathan B. Cox, Staff = WriterComment=20 on this story

Lenovo is in the business of selling gleaming = new=20 computers.

But it also aims to make more money from old ones.

The company, which has a world headquarters in Morrisville, has = started a=20 service to help businesses deal with aging machines.

Lenovo, through electronics recyclers such as GEEP, which has a large = operation in Durham, will take back old machines of any brand, remove = data,=20 refurbish computers that still have life left and recycle those that = nobody=20 would want.

The move comes as businesses and consumers focus more on the = environment and=20 as all computer manufacturers look for new ways to generate revenue.

The amount of profit that companies such as Lenovo and Dell make from = new=20 computers has declined.

Computers are more like commodities these days, which keeps = manufacturers=20 from charging a premium for most models.

"Hardware margins have declined quite a bit over the years and, while = they're=20 not terrible, terrible, they're not good enough to sustain a company = over the=20 long term," said Roger Kay, president of technology research firm = Endpoint=20 Technologies Associates.

"All PC companies are trying to increase their proportion of services = attached to their hardware."

Dell, Hewlett-Packard and many other manufacturers have long offered = computer=20 recycling. For some, it's a way to entice buyers.

Dell, for instance, will recycle Dell-branded products for free, and = it takes=20 other manufacturers' gear when a customer buys new Dell products.

Lenovo has had offerings, too. For $30, consumers can dispose of = unwanted=20 electronics gear through Lenovo.

Last year, the company said it facilitated the disposal, through=20 refurbishment or recycling, of more than 38 million pounds of computers. = But its=20 approach largely has varied by geography.

Many business customers with operations around the world "have come = to us and=20 said, 'We need a global solution,' " said Henry Hicks, Lenovo's vice = president=20 of worldwide services sales and marketing.

They want a single contact with the "processes to ensure the stuff we = don't=20 need anymore is either going to get a second life or is being disposed = of=20 properly."

Many larger companies upgrade their computers every three to five = years,=20 making the issue of equipment disposal a serious one.

The companies not only want to avoid environmentally unfriendly = actions that=20 could embarrass them, they want to ensure that sensitive data are = completely=20 removed so as not to jeopardize proprietary plans.

Lenovo will provide options through its service to ease any fears.

Pricing will vary, depending on the needs of each customer, Hicks = said.

The company wants to refurbish as many as 80 percent of the computers = that it=20 takes in. Customers will get money back from those that are resold.

In the coming months, look for Lenovo to roll out other services for = its=20 customers, Hicks said. It's working to develop services that are = targeted to=20 specific segments of customers -- small and midsize businesses, for = example, or=20 large multinationals.

"It's absolutely one of our growth strategies for the company," Hicks = said.=20

jonathan.cox@newsobserver.com or (919) = 836-4948

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News & Observer | = newsobserver.com |=20 Lenovo boosts recycling to generate revenue

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