IBM Puts PC Business Up for Sale

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."

Comments

OMGWTFBBQ!

[Anonymous Coward]

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.

Re:OMGWTFBBQ!

[eyepeepackets]

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.

Who would have guessed...

[superdifficult]

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

what about the thinkpad?

[CheechBG]

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.

Time to rename IBM?

[hrvatska]

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.

Corporate Profits

[Sammy76]

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.

Re:In Corea...

[beh]

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!

It's Kind of Fitting

[Greyfox]

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.

The brick shithouse of notebook computing

[Yankel]

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

Re:Different experience w/ ThinkPads

[tmasssey]

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.