It's official: IBM sells PC biz to Lenovo
By Peter Rojas 
posted December 7th 2004 9:31PM
posted December 7th 2004 9:31PM
It's official: the news just broke a few minutes ago that IBM is indeed selling their PC business to Chinese computer maker Lenovo. IBM settled for $650 million in cash and $600 million in Lenovo stock, a deal with gives IBM ownership of 18.9% of Lenovo. Lenovo gets all the associated "Think" trademarks, like for the ThinkPad and the ThinkCenter, and will hire on 10,000 or so of the employees in IBM's PC division. We're curious to see what Lenovo will end up doing with the ThinkPad, but we're even more curious to see what IBM decides to do next.
Too bad, the Thinkpads are very nice computers even though they are a bit pricey. I'm still using mine from 5 years ago right now.
Eager to see if the Apple situation comes into effect now.
wut do they need the ibm name for?
do they get all the factories? that might be worth selling wutever needed to give IBM that 19%
Too bad, the Thinkpads are very nice computers even though they are a bit pricey. I'm still using mine from 5 years ago right now.
Eager to see if the Apple situation comes into effect now.
Very interesting...
Yeah. ThinkPads rock for a PC...they were well built machines.
Here's my wild guess:
- IBM buys Apple's hardware ("Macintosh") division
- Apple keeps the iPod, OSX, and its software
- Apple ships OSX for Intel
It could happen.
IBM will NOT buy Apple.
It's ridiculous to think that IBM would leave its own PC line, citing their desire to focus on services, only to go out and acquire another PC company - which doesn't even fit in with their portfolio. I'd love to see it, if only for pure entertainment purposes, but it's not gonna happen.
As for the real news, it's very interesting. It's more of an alliance than an outright buy-out. IBM will probably still have a large influence on the products that will carry its name.
http://www.pc.ibm.com/ww/announcement.html
Win-win?
Ok. I've read TFA, and now officially retract my wild guess (though it's always fun to speculate about these things).
It is still pretty damn interesting. Rather than simply selling the division, this seems more like a clever way of both outsourcing their production and entering the Chinese market with a bang.
Thinkpads are already produced in China. No big change there. IBM makes the PowerPC chips that the Apple machines use. Some sort of alliance there could be useful. Maybe IBM will make branded iPods and call it a day since it seems like iPods are destined to rule the world one day (look at Apple's share price). =P
historic paradigm shift
This is unprecendented for a company in China to buy a major US name brand so that it can sell goods in the US. It is not only US companies that are becoming game for big Chinese companies, even Japanese name brands are up for grabs. There are rumors that Mitsubishi Motors is in talks to get bought out by a Chinese car company. You will see Chinese made cars in the US pretty soon. I use to think that China could catch up economically to the US in maybe 30+ years. However, after seeing what China has accomplished in the last few years, I would not be surprised if China can catch up to the US economically in the next 10 years. With economic prowess follows military might. The US has a real competitor now...
Funny thing is that Lenovo is "Ltd." - privately owned copmany and IBM is publicly traded company. It shows huge strength that Chinese companies have...
The 19th Century was the century of Europe.
The 20th Century was the century of the U.S.
The 21st Century, clearly, will be the century of Asia (with China at the fore, but other countries like India also playing a big part).
Maybe IBM and Apple will stop getting delayed if they decide to work a little closer...(the 3ghz PPC, Steve?)
Completely sell all PC business? That's a huge move, maybe their E-Business strategy is very successful, "IBM" is gonna to have a new meaning.
#Here's my wild guess:
#
#- IBM buys Apple's hardware ("Macintosh") division
#- Apple keeps the iPod, OSX, and its software
#- Apple ships OSX for Intel
#It could happen.
More like IBM processors, Apple OSX
AND Lenovo consumer hardware > IBM server, workstation(may with IBM processors, Apple OSX)
What do you think?
Why is it hard to believe that IBM would dump its PC division and then acquire Apple Computer? Microsoft tried to do the same with Intuit until the Justice Department told them they wouldn't permit it several years ago. Under that scenario, Microsoft would have spun off or sold off its own "Money" line. Its the same argument.
And the 21st Century will be the Second American Century providing we lead the world in biotech and space exploration. Japan is in decline; the Korean Peninsula will probably be engulfed in a nuclear scenario in a decade; India and Pakistan could exchange nukes; and China suffers too many internal problems to keep it from achieving the status of a "superpower." It cannot even subdue Taiwan without risking an overwhelming American nuclear strike. Now flash forward to the 22nd Century and then you'll have a better shot at that argument as long as Europe is still not united with language, culture, and working institutions with popular support.
Wow Jeremy, you jump to some extreme reactions!!
So, Korea, Indo-Pak will nuke each other. Sure why not? WHy have they NOT done it this far? RATIONALE: Deterrence. Nukes dont kill, they prevent killing. You think Americans are the only ones with Nukes?
Mostly, America and any other nation is not worried about a nuke attack from another nation, moreso from a uncontrolled person who has access to resources in a nation. Why do you think America has shown restraint in the Korean peninsula and not on the Middle east? Because of that deterrent. Also, you claim america is leading in Biotech? Have you any idea the vast advances being made in Japan, England and in Germany? As a Student in a research Engineering university with a good biotech development, I can tell you that Americans are playing catch up adn their Nitro Boost is the cash flow, but it is still catch up. Space exploration, I can reason with thanks to Burt Ratan. In terms of world dynamics in 20 years, I doubt that you can make a SINGLE prediction without India and China playing a MAjor, Major role. IBM sold to china.. why? MArket. Similarly, why is Intel bowing to demands and deadlines? Market. there is about 3 BILLION people to sell to in china+ India. Way larger than USA+Europe+ Aussie etc. That is simple reason why no matter the economics dollars location, then spending power of the new economies is balooning and this is what AMD, Intel, IBM, heck any company HAS to jump into the bandwagon or get left behind. good luck with "nuking the world"
People are too rational for that. you have to realise lunatics dont command countries ORDINARILY
bye!
"An uncontrolled person who has access to resources in a nation." I guess you've never heard of Kim Jong Il?
IBM sold to China not for markets because, China's market is already a surplus market. People don't want computers, when they can go to internet cafes. They sold it to dump it, and provide liquidity to their accounts and even reorganize from the bashing they got during the bubble crash. Alot of Chinese remake their computers with new inside components.
IBM learned that the hardware business is a pain in the neck, especially forcasting supply for nonexisting markets, and going into debt because of it. Software is less expensive and they learned from Microsoft. IBM could careless about Apple unless Apple buys from them.
IBM would want to go into the communications software business such as translation devices, using optic recognition and digital response ipod delivery systems. Very lucrative and more demanding than the heavy supply side of PC manufacturing.
The recent sell and news of IBM is stock market tickering trying to convince unwary Americans of the true nature of Chinese markets, in order to garner stock purchases, and securities.
In my opinion this is nothing New since IBM has trying to dump this way back in the 1980's.
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ty
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