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IBM sells its PC business

Written by

Mark Wilson

in

Last night, on my way home, I heard BBC Radio 4 reporting on IBM’s sale of its PC business to Lenovo.

So what! Another merger in the overcrowded PC manufacturing space. Well, absolutely, except that IBM invented the personal computer and were the third largest PC retailer in 2004!

It will be interesting to see how HP (who are still trying to get to grips with their acquisition of Compaq) respond to this latest move in the market. IMHO, Dell should also be watching their backs, as although they have over twice Lenovo’s new market share, there is much talk about the strong growth of the Chinese economy which may well allow Lenovo to reduce the business’ cost base, providing opportunities for further reductions in PC prices, in a market that is already largely commoditised.

Links
BBC News report: Lenovo: The making of a legend?
IBM press release
Lenovo press release

Comments

2 responses to “IBM sells its PC business”

  1. Mark’s (we)Blog » Gartner’s top predictions for 2005 and beyond

    […] 2007, three of the top 10 PC vendors will exit the market” (IBM have already sold their PC business since the original Gartner research note was written in November […]

  2. Anonymous avatar
    Anonymous

    well one year from all the hype and the selling off of the pc bussiness it looks like lenovo are doing well new thinkpads with wide screens and the new tablet. They even have a UK site which is cool http://www.lenovo.co.uk good not to be forgotten

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