Now this is news. Chinese takeaway for IBM's PC business? - vnunet.com
Forbes did mentioned that IBM's PC Business Not Strategic To Core Strategy "Prudential Equity Group said that if IBM (nyse: IBM - news - people ) were to sell its PC business, 2005 earnings would be lowered by 5 cents per share, relative to the research firm's $5.50 estimate. Over the last four quarters, IBM's PC business has represented about 9% of its $95 billion in revenue, Prudential said. Reports Friday speculated that IBM is considering selling its PC business to Lenovo of China. Prudential said, "We believe that the PC business is absolutely not strategic to [IBM's] long-term core strategy. Over time IBM's strategy has focused more on a services and software push. To the extent that IBM does remain in hardware, they have focused their attention on areas in which they are able to differentiate themselves and add value (Unix, Linux and Windows on higher end servers, storage)." The firm rates IBM at "overweight" with a 15-month price target of $110."
But I bet no-one saw this coming. I mean C'mon -- how can these guys sell the Thinkpad line to some obscure Chinese company.
"In the past 24 hours sources claiming to be working on the alleged deal have named Lenovo (formerly Legend), China's largest maker of personal computers, as the probable buyer.
Lenovo accounts for nearly a quarter of China's PC sales, while IBM sells five per cent of the world's PCs.
"It is IBM's policy not to comment on rumours or speculation," a tight-lipped company spokesman told vnunet.com."
That would be a pity.
Saturday, December 04, 2004
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2 comments:
Well--I don't think it includes the Thinkpads..just the desktops. Thinkpad is a major brand and a money maker.
And guess what...soon all PCs will be sold by Dell and soon you'll see PCs getting more expensive. Yeah !
"The sale, likely to be in the $1 billion to $2 billion range, is expected to include the entire range of desktop, laptop and notebook computers made by I.B.M. "
http://www.nytimes.com/2004/12/03/technology/03ibm.html?ex=1259816400&en=c60a66b7afa86173&ei=5090&partner=rssuserland
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