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Going, Going, Gone: IBM Sells PC Group To Lenovo
It was rumored before, but now, as Rick Zeman writes, "It's official: According to news.com, IBM has sold their PC business in a complex arrangement where, 'under the deal, IBM will keep an 18.9 percent stake in Levono. Lenovo will pay $1.25 billion for the IBM PC unit and assume debt, which will bring the total cost to $1.75 billion. Lenovo will pay roughtly $650 million in cash and $600 million in securities.' Plus, Lenovo will be able to use the IBM and Think names for 5 years."
Wow, hard to think the IBM Thinkpad I'm typing on now will be made by the Wal-Mart of computer manufacturers. The FA mentions that Lenovo doesn't spend much on R&D, doubtful they would make drives that survive the 6' fall IBMs do. In my circles, IBM laptops are known as "expensive", "tought", and "secure". Especially since many of them come with BIOS locked biometrics. Sad to see this happen, but I guess the PC market is going commododity.
Try http://www.lenovogrp.com/ (or http://www.lenovo.cn/ if you know Chinese). I think Thinkpad and other IBM gadgets will decrease as much in quality under Lenovo as Volvo has decreased in quality under Ford's oppressive measures (or Saab has under GM's). It's just a transaction of money, estate and control, the quality will depend on wise management, regardless where the production is.
If not for the stock premium caused by the iPod it might make sense to buy a company known for its superior product design, as IBM focuses on proving more value (and charging higher premiums for it) to clients than the commodities themselves provide, but here it is selling a well-regarded laptop line for a bargain... why would it turn around and by one for a huge premium?
Who do you get to be an expert to tell you something's not obvious? The least insightful person you can find? -J Roberts
This would give them a $50-75 cost disadvantage versus everyone else. Now they can support Linux 100% and leverage the Power / grid architecture into other areas. Incl. making reference designs available to OEMs
Help fight continental drift.
But IBM and Apple are both smart enough to realize that merging two companies with their own unique cultures is a difficult, sometimes impossible task. Bigger is not always better, as IBM learned during their dark years. A loose alliance based on mutual respect is likely far better for both companies.
Rumors about Apple mating with other companies have been around as long as the Mac has existed. Sun, Disney, Sony, IBM - I wonder who it'll be on the next iteration of the rumor mill.
Read the EFF's Fair Use FAQ
I take umbrage at that. You see, I used to work for IBM. I've had a number of ThinkPads over the years. I also currently own an Apple PowerBook. And I'd easily put this system in the same league as the ThinkPad (if not slightly higher -- where most modern ThinkPads are designed primarily as Windows systems, Apple's boxes are at least Unix based).
If you don't lock yourself into a specific architecture, you can see that Apple's PowerBooks easily rank up there with IBM's ThinkPads. Indeed, these are the only two companies for a very long time who have done any significant R&D into laptop usability. I'd pit my PowerBook against an Intel-based laptop any day.
In year one I imagine they'll use the IBM name. In year two they'll introduce some models under their own name in certain parts of the world. In years two through five they'll brand their systems under both the IBM and Lenovo names at the same time (ie: both logos on the boxes).
The idea being they'll wean their customers into thinking of their brand name as being equivalent to the IBM brand name. They have five years to do so -- an eternity in Internet time.
The questions becomes -- will it be successful, or will five years from now people be talking about the "good old days" when IBM made their PCs with quality and usability in mind.
Lenovo is buying a lot of expertise for their money in this area, so maybe they'll be able to pull it off. Or maybe not. Personally, I'm an Apple guy now for my laptops, so I couldn't really care less :).
Yaz.
And yet, Dell's tech support is in India, whereas IBM's tech support is in the US. Hmm...
Condemnant quod non intellegunt.
[rant] I agree. I've read most of the posts on this story and most are ignorant accusations that Lenovo will bring down the quality of IBM products....because OMG! they're a CHINESE company.
Yet, if most of these posters took a look under and inside their laptops and even PCs (even the ones with "IBM" stamped on them) they'll likely find big fat "Made in China" stickers.
Folks, China is already the "factory of the world" and for far more than just toys and cloths. Update your mental databases. It's no longer 1980. Toys, apliances, electronics, PCs, car parts, partially assembled automotive units (i.e. suspension) and a host of things you use are made in China and will increasingly be so. In fact, it won't be long (if not already) before many of the cars you drive are entirely built there.
Being that most people who rant about Chinese quality tend to be 'Merkuns it's rather ironic considering the track record of U.S. manufacturing quality (particularly large corporations). Even Korea's Hyundai has surpassed the big 3 automakers in quality. Remember Hyundai? [/rant]