Lenovo Completes Acquisition Of IBM's PC Division

karvind writes "Chinese computer maker Lenovo has completed its $1.75 billion purchase of IBM's personal computer division, creating the world's third-largest PC maker. Under the deal, IBM takes an 18.9 percent stake in Lenovo. Lenovo paid $1.25 billion for the IBM PC unit and assumed debt, which brought the total cost to $1.75 billion. Slashdot timeline: Dec 3, 2004: IBM Puts PC Business Up for Sale, Dec 4, 2004: Chinese PC Maker Looks to Buy IBM's PC Business, and Mar 9, 2005: U.S. Approves IBM/Lenovo Sale"

Comments

But will they run Linux?

[belmolis]

Here's a case in which the standard question "but does it run Linux?" is actually relevant. China getting into the PC business in a big way could have an impact on the availability of machines on which one doesn't have to pay the Microsoft tax. With China explicitly interested in independence from Microsoft, it seems likely that they won't play ball with Microsoft and will offer machines with no OS or with Linux pre-installed.

Re:But will they run Linux?

[nycbicyclist]

Acer sells its laptops in Taiwan with a version of Linux called Linpus. But Acer laptops in America (and Europe too, I believe) are strictly windows. I wrote to Acer North America asking if I could get a copy of Linpus, but never got a reply. In any event, your main point is still probably correct -- Lenova may offer linux machines in China (thus adding to the linux juggernaut), even if we don't see the benefit in North America.

Maybe they will build something different?

[big-giant-head]

With the powerpc, the cel processor maybe IBM ditched the old pc to begin something new? Maybe not. However I could see somekind of wirless set top box that records (DVR) has basic Web/Email/Office capabilities and has wirless KB and Mouse. Others have tried it, but maybe it's time has come?

BTW whatever happened to CHRP and the promised PowerPC MB's we hobbyists could buy and build our own system from?

no more discounts?

[jwjcmw]

One thing I noticed with the acquisition is that some of the discounts that were available previously are not there any more. Realtors were able to get a pretty good discount (20% or so) on Thinkpads, but when you go to the link from the Realtor partner site, there are no thinkpads with discounts listed anymore. I wonder if they are doing away with these discounts? What about the good discounts that IBM employees get for their family and friends...I'd really hate to have to pay retail for a thinkpad.

Why don't major vendors sell Linux PCs??

[moeinvt]

I recently saw a pretty decent deal on a Dell PC and called to ask if they would sell it with Linux pre-installed. No. Well, how about with no OS? Sir, you can reformat the hard drive when you get it and. . . OK, forget it. I was then quite stunned when I called about an IBM PC and even THEY(one of the biggest corporate backers of Linux) wouldn't sell a PC with Linux pre-installed . . . or even a box without Windows. ??? How is Linux supposed to catch on and put a dent in the MS monopoly when the major vendors won't sell Linux boxes and force you to buy a Windows OEM license regardless?

Re:ThinkPad's have been made in China

[Anonymous Coward]

Very true. I've bought several Chinese Acuter spotting scopes (optics are another area with frequent China-bashing, top scopes being made in Austria or Japan for thousands) and found little noticeable difference with scopes whose sales tax cost about what I paid for the whole scope + zoom lens + video tripod. Sharp, bright, fully-round images from 20x all the way to 60x with an 80mm objective. I could not justify the $$$$$ leap for the noticeable but relatively minor quality differences.

Don't people remember how Japan was underestimated post-WWII? And Japan doesn't have a fraction of the manufacturing capacity of China!

Which machines do they get?

[LWATCDR]

Do they get all the x86 servers as well as workstations and thinkpads?
Just wondering.

Off to a bad start

[TheBeginner]

I just spent 2 hours on the phone yesterday with customer service and ended up angry both at the lack of any resolution to my problem and the complete and utter waste of an hour and a half.

According to one of the 6 people I talked to during my wonderful adventure, yesterday was the day on which Lenovo took over customer supoort in form, if not in practice. The call (4 calls in truth) I made was still routed to IBM's call center in Atlanta, but my problem was given a Lenovo tracking number. Also, new procedures of a nebulous sort had just been put in effect. While no one I talked to was willing to admit any substantive change, it became clear to me during the course of the 2 hours that something had changed.

To be fair, this is a bit of a rant. My computer, a thinkpad T40, lost the ability to display useful images at about 9 am yesterday, and instead award me with a rainbow of vertical strips immediately upon power on. As it turns out, I needed to have the system board replaced as the graphics chip had stopped working. I am a student and finals are several days away and I needed my laptop in order to take one of the finals so I was distressed.

I called IBM at 1800IBMSERV and my fears were quelled immediately when I was told that I would simply need to upgrade my existing "depot" (send-it-in) warranty to a "on-site" (they come and fix it) warranty. The cost was 120 (later, when I paid it was dropped to 98) and it was worth it to me to have a computer in time for my final. So I was transferred to sales where I had to explain everything again, I paid for the upgrade and was told to call 1800IBMSERV again to schedule my maitenance for the next day. The sales person told me that because I wanted immediate service I would have to talk to "endowment" (an ethereal branch of the IBM hierarchy that turned out to be the devil incarnate) and explain my situation but that it would not be a problem. I called back, waited on hold for not too long (5 minutes) and then explained my situation yet again. After spending 10 minutes explaining everything, I was transferred to the mysterious "endowment" department. I explained everything once again and at that point the entire experience disintegrated. I was told that I, in fact, would have to wait for up to 3 days for my warranty upgrade to "invoice" and then anohter 5 days for that upgrade to be applied to my computer.

At first I couldn't believe this. I had been told that I could get service the next day by two people. I had purchased the upgrade on that understanding. I insisted to this "endowment" demon that she must be mistaken. After quite a bit of insistence on my part, she told me that I might be able to get this to work if I called back sales and got the "information (unspecified)" she needed to put this directly through.

So I called sales, waited on hold for about 40 minutes with a woman's voice repeating every minute or so "please be stay on the line and your call will be answered shortly." That phrase repeated so often was the worst part of the whole experience.

I finally got a salesman, he told me that the voice on high of endowment was correct and that I was simply out of luck (read - had been misinformed for 1.5 hours). I asked if this was due to the changeover to Lenovo, and he said no. Later, after a bit of "discussion," he mentioned that under the old policies this could have been fasttracked, but under the new, I was out of luck. This chnage seems to have just happened to coincide with the changeover.

Now, perhaps all of this is just a kink that will be worked out. I have loved my thinkpad, and I have loved the alacrity at which IBM service has always leaped to help. At the moment, I am deeply disheartened and fear for the future.