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IBM Puts PC Business Up for Sale

Posted by michael on from the end-of-an-era dept.

valdean writes "When I was growing up (in the 80s), there were two kinds of computers that my friends (or, more specifically, our parents) had at home: Apple and the IBM-Compatible. IBM defined the PC at that time, and deserves a large share of credit for taking the PC out of the hobby shop and into the mainstream. Now it looks like IBM is getting out of the PC business altogether. CBS Marketwatch has another report."

27 of 527 comments (clear)

  1. OMGWTFBBQ! by Anonymous Coward · · Score: 5, Interesting

    You have to be kidding me. They would be fools to sell off the Thinkpad line! Go ahead, get rid of your desktop systems line, but *please* IBM keep your Thinkpad business. These (and the Apple Powerbooks) are the best laptops on the market today, and well worth a premium price. I've owned 5 different Thinkpads over the years, from the 701C "Butterfly keyboard" model up through the T and X series. Every one of them still works perfectly.

    If they sell the Thinkpad business to some company in China the future designs are likely to be less inventive, unique, and reliable than the current generation. I guess I'll have to buy Toshiba instead.

    1. Re:OMGWTFBBQ! by tez_h · · Score: 2, Interesting
      I agree to this wholeheartedly. I was just eyeing up a t42 the other day. Will they go out of business before I can save a little extra cash for one? Maybe it'll be cheaper *after* they sell out. Hmm.

      -Tez

      --
      Haskell, the static-typed, lazy, polymorphic, programming language.
    2. Re:OMGWTFBBQ! by swordboy · · Score: 2, Interesting

      They would be fools to sell off the Thinkpad line!

      Actually, maybe not so much. They are quite a bit more expensive and, if you've ever worked in a large corporation, will notice that they're not so popular anymore. Rather, they are popular with the users (largely because of the commercials (click film strips at top of screen). I was given a Dell D600 this time around the lease replacement merry-go-round and, it is garbage compared to a Thinkpad. But it was oodles cheaper even with the extra battery and AC adapter thrown in. HP/Compaq is even cheaper lately. I miss my third mouse button for scrolling.

      But I keep my eye on who is using what laptop and I'm seeing lots of Dells and HPs. The Thinkpad era is over.

      --

      Life is the leading cause of death in America.
    3. Re:OMGWTFBBQ! by Jorrit · · Score: 2, Interesting

      Not sure what you mean by 'jizz over the keyboard' but if you mean that they type fast then yes they do. My mother is a professional writer and writes her stuff on the laptop.

      Greetings,

      --
      Project Manager of Crystal Space (http://www.crystalspace3d.org). Support CS at http://tinyurl.com/cb3x4
    4. Re:OMGWTFBBQ! by Sgt+O · · Score: 1, Interesting

      A few years back I was working for IBM and I remember Lou Gerstner having a 'town hall' type meeting with everyone. One of the things he talked about was how poorly the desktop market was doing and essentially that they were looking for ideas. The first thing that came to mind was, 'well the desktop models are expensive and ugly'.

      While I agree they should keep the ThinkPad and server lines, the market for plain old desktops doesn't seem to support a big player like IBM. Especially when most anyone can build one themselves for half the price. --- I'm new here and therefore don't rate a sig.

    5. Re:OMGWTFBBQ! by eyepeepackets · · Score: 4, Interesting

      I suspect IBM is bailing out at just the right time and, of course, they're the ones to know when to go. Indeed, who would know better than they?

      That IBM is doing this should make your ears perk, your eyes focus and your wits sharpen: It's soon to be sea-change time in the PC world and IBM doesn't want to be holding old technology which has an obvious and rapidly approaching date with history.

      Remember that IBM targets and markets primarily to business customers, they don't much care about Jack and Jill consumer beyond how they perceive IBM in general, hence the big image advertising budget.

      Should prove to be a very interesting next five years.

      Ciao.

      --
      Everything in the Universe sucks: It's the law!
    6. Re:OMGWTFBBQ! by Jucius+Maximus · · Score: 2, Interesting

      I've never experienced that. Toshiba has been used in my family for years with nary a problem. The most problematic ones were NEC and Dell. We've had the best experienes with IBM, Toshiba, Fujitsu, Compaq and Apple.

  2. Who would have guessed... by superdifficult · · Score: 5, Interesting

    ...that IBM would end up making Apple's processor.

  3. what about the thinkpad? by CheechBG · · Score: 4, Interesting

    I understand they are getting out of the biz, but I really hope they sell or license the IP for the Thinkpad, those are some quality built machines.

  4. Just two kinds? by Phoenix-IT · · Score: 1, Interesting

    The Commodore 64 had a pretty high market saturation at that time. In fact, most of the time the Commodore software section was larger than that of the IBM or Apple.

    Next time, give the ole 6510 a nod wouldya?

  5. You've got to be kidding!! by uid100 · · Score: 1, Interesting

    They make the best Intel servers on the market.
    xSeries kick the $h1T out of the competition and they are the only real Intel based server company with a solid support infastructure.

    noooo......

    --
    ...yup...
  6. Time to rename IBM? by hrvatska · · Score: 5, Interesting

    I suppose at some point IBM will get out of hardware entirely, and then it can re-name itself International Business Services or something else more appropriate.

    If you are ever near Endicott, NY (birth place of IBM), try to get into the IBM heritage center at IBM's former Endicott facility. It traces the long heritage of IBM as a provider of machines, computer and otherwise, to business. Lots of vintage equipment on display. A very nice exhibit.

  7. If only by Apreche · · Score: 2, Interesting

    If I had enough moneys I could buy the business. Then I could stop dealing with MS (save costs) and sell the PCs with a real linux build on them. None of this Sun and Lindows stuff. I'd build a gentoo or a debian and setup the desktop all nice with some easy gui tools for updating software. I'd stop making desktops and stick to thinkpads. By taking the windows tax off the price of the laptops I can beat everyone else on price. All the nerds and poor college students would buy them. It would rule.

    Oh, but I don't have a hajillion dollars to buy it. Sorrow.

    --
    The GeekNights podcast is going strong. Listen!
  8. Corporate Profits by Sammy76 · · Score: 5, Interesting

    The article cites that one reason for the sale is the slim profits on the PC business, and gives as evidence the $100M profit IBM will make on the division this year.

    I agree for IBM that in terms of outlay:return, that is probably a pretty slim profit. But the division is profitable, most of the time. Furthermore, I assume quite a few jobs are going to be lost if they sell to an asian (Chinese) producer.

    So, it saddens me to see more jobs leaving the US not because the product can't compete or is unprofitable, but because it not profitable enough. Especially for IBM, where even though their business model has been changing over the last 15 years, PCs are still a sort of "core competency." It seems sort of like if GM sold its car production business to focus on its more profitable credit operations.

    Anyway, I wonder what will happen when IBM outsources its "services" jobs to some companies in India or Eastern Europe.

  9. Re:In Corea... by beh · · Score: 4, Interesting

    That is because a lot of (younger) people let buying decisions be controlled by design issues -- a friend of mine has an incredibly loud computer at home - it isn't even a fast or very powerful machine. But the outer design is just "soooo cool". What a moron...

    My first laptop was an Thinkpad 600E, and since then I've had 3 more machines (A21P, A30P, T42P), and I wouldn't trade them for anything!

    I would sign any "petition"/"begging letter" to IBM asking them to keep their Thinkpad line any day...
    The premiums they ask for their notebooks are definitely worth it to have their machines!

    Also, if I look at my colleagues at work - my T42P is my company notebook, everyone of us just gets the same budget for hardware, and I just spent my whole budget on the machine, instead of buying a notebook, a larger external screen, keyboards, docking stations and the like. Why should I even consider those? The display on my machine is magnificent, and unlike many other laptops I've seen, their machines are optimised for ergonomics; something that can't be said for some Dell notebooks I've had the misfortune of having had to use them for a while. Those are pretty much unusable without an external keyboard/mouse, and if I had the money to buy an external screen for them, I WOULD.

    IBM, please come to your senses and keep the PC business. Even if it's profits aren't large - they are a credit to your company's reputation and it can only benefit you to maintain them!

  10. It's Kind of Fitting by Greyfox · · Score: 4, Interesting
    Since IBM PC Co played a major role in the death of OS/2 to begin with. A lot of customers were understandably dubious of an operating system that even its creator wouldn't bundle on their systems.

    Anyway, we all remember what happened to Lexmark, right? They used to be the under-performing IBM printer company until IBM spun them off. Now they're one of the more successful printing companies in the industry? Coincidence? Maybe their productivity shot up when they got out from the IBM mandate that everyone in the company use Lotus Notes.

    Speaking of non-strategic underperforming dogs, I wonder when IBM is going to jettison Lotus. It really seems like the only people in the industry who use Lotus software these days are IBM themselves. I think it's time the company put that 6 billion dollar mistake behind them.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    1. Re:It's Kind of Fitting by zulux · · Score: 2, Interesting

      Speaking of non-strategic underperforming dogs, I wonder when IBM is going to jettison Lotus.

      Have you actually used Lotus Notes / Domino recently?

      In the two years or so, it's gone from horrably sucky to downright cool.

      The time to get rid of Lotus was three years ago, but why switch when now it's good?

      --

      Moneyed corporations, non-working 'poor' and criminal prisoners are turning productive citizens into tax-slaves.

  11. IBM is selling its PC unit because.... by Wingsy · · Score: 2, Interesting

    They are working a deal with Apple to start manufacturing and marketing an IBM branded Mac. Wait n see.

    --
    If I didn't have absolutely NOTHING to do, I wouldn't be here.
  12. Profitable Technology by Gates82 · · Score: 2, Interesting
    IBM is all about profitable technology. When a product does not yield a decent return they drop the line. Consumer Hard Disk Drives make very little margin, so IBM sells off 70% of the Consumer HD production to Hitachi, this still gives them room to use technology inovated by Hitachi in the IBM owned server disk drive market (high yeild). IBM stopped selling computers in retail store several years ago, they were moving away from the average low yeild PC user, and moving to a more to a sole business machines company. I doubt they will drop their Intelli-stations or Thinkpad line. Those are business machines, it's simple the consumer level hardware they want to rid themselves of. There are to many vendors in the consumer market.

    --
    So who is hotter? Ali, or Ali's sister?

  13. Re:Too bad by oldmanwalt · · Score: 2, Interesting

    Is it time we consider the implications of where and what we purchase? I went through several vendor laptops before paying extra for the IBM. I have been very happy with all 12 units. I have never been pleased with the others (Tosh, Hitachi, Compaq, HP, Dell, etc...) This is just another casuality in the price vs quality war. I guess I will have to shop at Wal Mart. Long live low prices, long live low prices :)

  14. The brick shithouse of notebook computing by Yankel · · Score: 5, Interesting

    I must admit, these suckers are the most stable - in terms of software compatibility and durability. I've had a 600x and a T40 - and both are wonderful.

    I did hear about some potential hard drive problems with the T22 or T23 models, however, they did a mass recall. At work, IBM brought a crew in that backed every unit up and restored the image on a new hard drive.

    It's not only the hardware I'm going to miss, it's the servicing.

    I only wish my employer would allow me to buy it back when the lease ends.

    Yankel

    --
    --- Dan
  15. They are doomed if they sell Thinkpad line by Anonymous Coward · · Score: 1, Interesting

    Its foolish to send IBM thinkpad line. These laptops, especially X series, are the best PC laptops on the market.

  16. Re:Interesting idea by Anonymous Coward · · Score: 1, Interesting

    > it would be interesting to see if they would begin migrating their server product lines away from Microsoft as well

    I work at IBM (Software Group) and this is just my opinion from what I see in everyday life at the office. I don't think our software will stop supporting Windows as long as Microsoft keeps a significant share of the OS market among our customers who buy WebSphere, DB2, Lotus, Tivoli and other IBM software. Sure, we're big on supporting AIX and Linux, but we also support Solaris and HP-UX in addition to Windows. We have no great love for Sun, HP or Microsoft but our customers use their OSes, which means we either support them to or lose out on billions of dollars in sales.

    This is one good reason why the IBM Software Group had US$14.3 billion in sales last year. If we didn't make software for Windows or any other non-IBM platforms I assure you the figure would be MUCH lower. And conversely, most of our software doesn't support Mac OS, BSD or other excellent platforms since so few of our customers use them for IBM middleware types of applications.

    Likewise for hardware, our ThinkPads, ThinkCentre PCs and xSeries (eg, x86) servers all support Windows because most of our customers need that (though more and more are putting Linux on them, of course).

  17. IBM Service by MrNiceguy_KS · · Score: 2, Interesting
    I've seen a lot of people raving about the Thinkpads, (which are excellent machines,) but I've found that quality extend to just about anything they make. The bank I work for buys all IBM equipment, and we've had very good experiences. Desktop machines have been very solid and monitors have been incredible. When I first started at my current job, (about 5 years ago,) we had mostly CTX monitors. Total garbage - at any given time we'd have at least 2 in for repair. Out of about 100 monitors (at the time,) I'd say I had sent in at least 1/3 of them for failing within the 3 year warranty period.

    I'd imagine this is worse than average, which is why we started buying IBM monitors after I'd been there a couple of months. In the 4.5 years we've been using IBM monitors, I've had 2 go bad. Total.

    Which brings me to IBM's biggest strength, service. Anytime I have to call IBM for support, I speak to a real, living person in less than 2 minutes. I tell them the model number, serial number, and, for desktops, what part is bad.

    And I have a replacement part the next day. They always say 3-5 business days, but it's almost always the next day. The monitors that I've had go bad, they just send a refurbed monitor, I box up the old one, and send it back. No boxing up my parts, sending them in, and waiting weeks to get them back.

    I suppose I sound like an IBM fanboy, but only because of my experience. For a corporate environment, I've never recommended anyone else. I'd be extremely sad to see them getting out of the market. IBM makes great products, but I suppose people mostly buy on price. (except those nutty Apple users)

    --
    Redundancy is good And also good.
  18. Finally, they admit it. by bugeaterr · · Score: 2, Interesting

    In my opinion, IBM got out of the PC making business years ago. Yeah, they are still in the PC (Proprietary Crapola) business.

    Take my Netvista (please) at the office. It, like dozens of others, has had its motherboard burn up. Why didn't the network card work after they replaced it? Because it is a proprietary (extra long) network card which had not been stuck in their prioprietary, mutant, extended PCI slot.

    I wish IBM was as passionate about offshoring its PC's as it is American IT jobs.

  19. Re:Different experience w/ ThinkPads by tmasssey · · Score: 3, Interesting
    It's funny: when people ask me what type of notebook to buy, I tell them to buy a Thinkpad. I tell them that there is only one notebook better, but it's an Apple Powerbook! :)

    Oddly enough, I've been telling people that for years, but in the last year, people have been taking me seriously. They've been asking if they should buy a Macintosh. And for home, I've actually been telling them to seriously consider it... OS X really has changed the rules.

    --
    Linux IT Consulting and Domino Development in Michigan
  20. I think this is part of IBM's grand stategy. by Chemicalscum · · Score: 2, Interesting

    What I think IBM plan to do is this:

    1. Sell off the Windows based PC business.
    2. Then start up a mass market line of 64 bit Workstations and Laptops running Linux on Power for both the corporate and consumer market.
    3. Microsoft can no longer threaten reprisals on their PC business.
    4. IBM clean up on the 32 to 64 bit conversion and get their revenge on MS and create a lot of business for their FAB plant.

    Just a thought