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U.S. Approves IBM/Lenovo Sale
MartinB writes with the "Committee on Foreign Investment in the United States (CFIUS) review result: unanimous approval for the sale to go ahead, with no further external approvals needed. No compromises were required over the location of Lenovo facilities in sensitive research areas, nor were limits put on Lenovo's ability to sell PCs to U.S. agencies."
The Committee on Foreign Investment in the United States (CFIUS) approved the sale of Slashdot to Elbonian investors. New color schemes will be in earth tones. "Yes, different colors of mud!", stated one of the eventual new managers of the enterprise.
A feeling of having made the same mistake before: Deja Foobar
What will become of the beloved Thinkpads? Will Lenovo continue to maintain the same level of quality that IBM has?
More interestingly, I'd be interested to see if IBM started producing affordable powerpc laptops and desktops running Linux. It seems Microsoft can no longer wield the Windows tax against IBM.
The article is ~ 5 minutes old, and there's 10+ anti-china/america sold out posts already.
China and Taiwan ~already~ mass-produce the vast majority of systems components, their final assembly was pretty much the only remaining domestic manufacturing process. Also, IBM is being VERY wise in this regard, cashing in a unit that has very little future projected revenue growth and miniscule profit margins, and will gain the capital for some future expansion. PCs are a commodity business, and with the exception of Dell are probably a loss-leader for most companies now (e.g. IBM, HP/Compaq).
This is a wise business move by IBM, and it was wise for the US gov't to involve themselves in the sale. The technology is 20+ years old, the industry is commoditised, and its all open-standards based... there is no strategic threat here.
John Maynard Keynes: "When the facts change, I change my mind. What do you do?"
Does this deal leave IBM free to persue building a new PC based on Cell Processor and/or PowerPC technology, instead of the increasingly less efficient x86? If so, selling off the trailing edge x86 business would just be a smart business move, wouldn't it?
I've abandoned my search for truth; now I'm just looking for some useful delusions.
IBM is faced with the same dillema HP faces.
The only way to make money in the PC biz is by selling directly to consumers, bypassing the supply chain of stores, merchants, etc. But this conflicts with, among other things, IBM's consulting business which relies upon dealing with people, building relationships, rubbing backs, etc., etc.
HP faces a similar problem. The only way for them to make money in the PC biz is to sell directly to consumers. But this conflicts with their need for pushing printers and printer supplies which requires using the supply chain.
Instead HP is shedding money with their PC selling business and not doing so well in the printer biz. Good job Carly! But I digress.
Let the Chinese have the fun task of competing head on with Dell, IBM will do what they do best.
2 years and no mod points. Join reddit. Because openness is good.
Yeah, they probably don't actually use MSG in all the restaurants over there. You will probably notice the food looks a bit more rustic than the local Ho-Lee Chow or a can of La Choy.
The BBC has been carrying a number of analysis articles on China, where the economy is booming and where it isn't. Still shooting for 7% growth this year and they'll probably make it, while the rest of the world scrambles to sell them raw materials. Notice mining and steel companies are suddenly hot items?
A feeling of having made the same mistake before: Deja Foobar
I agree with those who view this as a smart move by IBM. Here's why:
... but I digress.
... anyway, that's hopeless speculation. Although, economically we are similar to Rome militarily. ... but now this is just the rambling of an IT guy who majored in History.
1. They sell a branch of the company that was often losing money for cold hard cash.
2. They get 19% of a Chinese company, giving them a way past China's trade barriars. They get a headstart on everyone else providing high end technology services to a booming Chinese economy that lacks said expertese and has the means to pay for it. Meanwhile HP languishes under two divisions of PC manufacturing (HP & Compaq.) Way to go Carly
3. Did I mention that this gives IBM a way to sell products and services to the Chinese? Potentially billions to be made before the Chinese technology providers mature to IBM's level. (Note: I'm not saying that China lacks intelligent people, it's just that the US/Western world has spents decades longer training thousands more techs. It won't take them long to catchup though.)
4. If the US screws up their economy too bad IBM has a lifeline! I really hope that letting the dollar fall in value helps with the trade gap and makes it possible for US manufacturing to pick back up. I do not think that the US economy will crash in 10 or 20 years. I do worry that it will crash in 50 to 100 years. I also fear that the US will decide the best thing to do is plunder a few countries via conquest with their surplus military equipment
The Romans were so confident in their legions that they stopped inovating. After all, they conquered everyone worth conquering, right? Wrong, they got beat by wandering nomads who actually fought differently than the Romans were used to: how dare they?! Western based companies, often spear headed by American companies, have dominated the economy for fifty years now, but people are starting to play by their own rules. Will they be able to compete or will the 'barbarians' decimate their legions with unorthodox tactics. I honestly hope something in the middle happens