As the world’s most valuable brands, Lenovo and Dell are no strangers to the marketplace.
But the two tech giants also have been doing well.
They have been profitable for more than a decade, and the brands have had a combined net worth of more than $8 billion.
The two brands are also the biggest players in their sectors, but they have struggled to break into the market.
And the latest market developments are likely to have a major impact on both.
Lenovo’s stock fell more than 12 per cent on Monday as investors worried about the potential fallout of the European antitrust investigations and other regulatory probes.
In January, Lenovo was ordered to pay $1.3 billion in fines by the European Union over the sale of a laptop business to a Chinese company, which also supplied parts to the Chinese military.
Dell has faced similar charges from the European Commission over its role in selling computers in Ukraine.
Both companies say they are cooperating with the probes.
“Lenovo and Dell both have proven they are highly competitive and we expect them to be able to maintain their current levels of success,” said Craig Federighi, director of research at New York-based investment bank Morningstar.
“We think both companies will benefit from the ongoing investigation into the Chinese purchase of Dell.”
Lenovo is facing pressure from the US Justice Department, which has subpoenaed documents from the laptop maker and is investigating whether the company misled consumers about the quality of the laptops it sold.
In a statement, Dell said it was cooperating with “any and all authorities” in the US, including the Justice Department.
It said it “will continue to cooperate with the government in any and all investigations.”
Dell, which is the world leader in laptops, said it had a “tremendous amount of respect for the American people.”
In March, the company said it would sell its laptop business in the United States to China’s Lenovo Group, after a series of lawsuits against the company by the US government and the Consumer Product Safety Commission.
Lenovo has also faced scrutiny from antitrust regulators over its purchase of the US chipmaker Altera, and it faces the possibility of losing its $9.7 billion market cap.
The company said Monday it was considering an offer from a Chinese manufacturer that would give it an “open market position.”
It said the offer is not final.
“The market for Dell laptops is quite small compared to the other brands, so we do not expect to sell them very often,” Lenovo’s Mr. Federighie said.
“But we believe that a competitive product is a key element to our strategy, and we will work to ensure that we are able to continue to have strong relationships with our customers and partners in the future.”
The European Commission has ordered Dell and Lenovo to pay a total of $11 billion for the purchase of their business.
The Justice Department has been investigating the deal, and both companies have said they are not responsible for any alleged violations of the antitrust laws.