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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"

32 of 192 comments (clear)

  1. A new hope for IBM by squiggleslash · · Score: 4, Insightful
    I just hope the Thinkpad survives. It's always been my absolute favorite laptop series. They're beautifully made, elegant, and they use, for me, the right pointing device (yes, I know people who don't like the trackpoint, but the trackpad is, IMO, nothing like as usable. Trackpoints are always stationary relative to the mouse buttons, which means you don't need that hack installed to make it usable that you do with the 'pad, where you're never sure if you just accidentally selected something because your attempt to move the mouse was interpreted as a click, etc. I know a lot of this is "what you're used to", but I also think it's an objectively better system.)

    IBM leaving the PC business seems sad, and I hope the fact they still have a big stake in the PowerPC and Workstation markets means they'll re-enter, this time with something a little more interesting. That said, it's important not to overstate this: IBM has never been a commodity player, and the PC business is a commodity market. That's why they're getting out. The chances of a populist computer coming out of IBM soon isn't that likely. It's like Anakin Skywalker being thrown into the lava and left there by Obi Wan Kenobe in the climactic scene of the new Star Wars movie, explaining why he has to wear the protective suit in his guise as Darth Vader and why he's all hairless and damaged in Return of the Jedi. Just like in that movie, it may explain things in the future of IBM (albeit things we're not aware of yet, whereas we've all seen A New Hope) and is a dramatic change. Hopefully though IBM's not "going to the dark side"!

    But it is sad. In many ways, I feel that when it came to IBM and its influence over the last few years, she blinded me with science.

    --
    You are not alone. This is not normal. None of this is normal.
    1. Re:A new hope for IBM by Anonymous Coward · · Score: 5, Funny

      It's like Anakin Skywalker being thrown into the lava and left there by Obi Wan Kenobe in the climactic scene of the new Star Wars movie...

      Worst. Analogy. Ever.

    2. Re:A new hope for IBM by Txiasaeia · · Score: 2, Insightful

      Well, customer service has definitely sucked over the past few months. The motherboard on my X31 broke at the end of March, and I'm still waiting for a replacement. IBM supposedly has a 3 day replacement policy for broken parts under warranty; it's been five weeks and IBM's been giving the runaround to both me and the tech (their business partner, for crying out loud) as to when my bloody $3000 notebook is going to be repaired.

      --
      Condemnant quod non intellegunt.
    3. Re:A new hope for IBM by tomstdenis · · Score: 2, Funny

      ...rant about trackpads ...

      dude, by a 10$ optical mouse and get over yourself.

      I'd rather use a real mouse than ANYTHING put in a laptop because it's just simpler. But touchpads aren't really that hard to use. They are annoying if you rest on it by accident when typing but other than that they're not a mystery.

      Tom

      --
      Someday, I'll have a real sig.
    4. Re:A new hope for IBM by Anonymous Coward · · Score: 2, Funny
      It's like Anakin Skywalker being thrown into the lava and left there by Obi Wan Kenobe in the climactic scene of the new Star Wars movie...

      Worst. Analogy. Ever.

      No, this is:

      It's like a bunyon in your left nostril left there by the intrusive drone of Alien Pope during his weekly sermon on why we should eat pieces of our neighbors liver to better understand the glories of our great god, Eddy the Reproductive Shrew, Lord of the Golden Fucker.

  2. taking bets by Naikrovek · · Score: 2, Insightful

    how long before we see lonovo machines at Best Buy?

    1. Re:taking bets by mmkkbb · · Score: 4, Funny

      I can probably spend about $15000

      You could trick out a PowerBook and a battery operated Xserve RAID for that much cash.

      --
      -mkb
  3. Um... who does this effect, really? by TodPunk · · Score: 3, Insightful

    Honestly, I don't think this matters much. Thinkpads are about the only IBM PCs I've ever seen used in the past 10 years. We had an old IBM PC back in High School that was donated because it simply didn't hold up. We ended up trashing it because it kept eating video cards like they were candy, and the computer lab didn't have many to spare for it. It did resist that sledgehammer well, but that doesn't have much to do with the computer itself.

    So in the end, this really doesn't effect anyone I know of unless you really want a Thinkpad...

    --
    This forum Sig is licensed under the LGPL.
    1. Re:Um... who does this effect, really? by amliebsch · · Score: 2, Insightful
      It did resist that sledgehammer well, but that doesn't have much to do with the computer itself.

      Unless, of course, you're talking about that Model M keyboard it came with!

      --
      If you don't know where you are going, you will wind up somewhere else.
  4. What Future For Thinkpad's? by rAiNsT0rm · · Score: 5, Insightful

    It figures the only laptop I will even consider since they hooked me on the little pointer nub is a Thinkpad. A lot of business users rely on TP's too, and now with this Lenovo aquisition what lays ahead for the beloved Thinkpad?

    --
    http://teasphere.wordpress.com - A little spot of tea
    1. Re:What Future For Thinkpad's? by ArtDent · · Score: 2, Informative
  5. But will they run Linux? by belmolis · · Score: 5, Interesting

    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.

    1. Re:But will they run Linux? by belmolis · · Score: 4, Informative

      Sure, I wasn't suggesting that they would refuse to provide MS Windows, just that they wouldn't insist on it. If they don't want to deal with MS, or if it becomes problematic because they won't sell all their machines preloaded, they might ship machines with no OS or Linux, with MS Windows installation done by OEMs or retailers for those who want it.

    2. Re:But will they run Linux? by grumpyman · · Score: 2, Insightful
      First off, Lenovo is a private corporation, not a state run business. It's all about profit. It's nature is just as good (or evil) as any other businesses in the world. Check this out:

      "ThinkPad recommends Microsoft® Windows® XP Professional"

      But I agree that it's possible that they may go towards more to a non-MS, or MS-agnostic company.

    3. Re:But will they run Linux? by chris_sawtell · · Score: 2, Informative

      ThinkPads run Linux beautifully. Look what 'uname -r' on my TP says:-
      Linux imogen 2.6.11 #3 SMP Fri Apr 29 14:57:42 NZST 2005 i686 Mobile Intel(R) Pentium(R) 4 - M CPU 1.80GHz GenuineIntel GNU/Linux

      It takes a bit of knowledge and effort to get the ACPI and wireless systems to go, but that's all. I'm happy.

  6. Maybe they will build something different? by big-giant-head · · Score: 4, Interesting

    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?

    --

    So Long and Thanks for all the Fish.
  7. no more discounts? by jwjcmw · · Score: 5, Interesting

    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.

  8. You know the coolest thing about thinkpads by ducttapekz · · Score: 5, Insightful

    . . . No windows key. I didn't like it at first but then I realized, it is a neutral pc. It doesn't have an ms advertisement on the keyboard. I hope that doesn't change.

    1. Re:You know the coolest thing about thinkpads by dmayle · · Score: 3, Insightful

      No windows key. I didn't like it at first but then I realized

      I bet you prefer Apple mice, too...

      Like it or not, the extra "Windows" key is something that has been missing on x86 PCs for ages, whether you run Linux or Windows. (I run both) Without it, it's much more difficult to go mouseless in a GUI environment. Not to mention all the fantastic keyboard shortcuts you miss out on in Windows without it. (W-D for desktop, W-E for computer explorer, W-R for a RUN dialog...)

      On Linux you can map it to your menuing system of choice, or a Meta-key, or just about whatever else. If they really wanted be "Neutral" they could have just put a different picture on the key. All they are right now are lacking...

  9. Why don't major vendors sell Linux PCs?? by moeinvt · · Score: 3, Interesting

    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?

    1. Re:Why don't major vendors sell Linux PCs?? by ssj_195 · · Score: 2, Informative

      HP are apparently working on a fork of Ubuntu (which will be merged back into the mainline branch) which supports absolutely 100% (from suspend/ resume/ hibernate to modems to 3D acceleration) of the hardware on some of their laptops, which I find heartening.

    2. Re:Why don't major vendors sell Linux PCs?? by tomhudson · · Score: 2, Informative
      Close, but missing a small point ... MicroSoft's contract for OEMing windows forbids the installation of other operating systems
      The '90s called - they want your pre-anti-trust-trial thinking back.

      OEMs are free to ship with other installed systems nowadays.

    3. Re:Why don't major vendors sell Linux PCs?? by chris_sawtell · · Score: 2, Insightful

      They have an agreement with the "DevilIncarnate" to pre-install his O/S for small batches. Order 500 units or more and you can have whatever O/S you like.

  10. ThinkPad's have been made in China by Anonymous Coward · · Score: 5, Insightful

    I wish to preempt foolish comments that quality will now deteriorate into the crapper:

    ThinkPads have been manufactured in China for some time now while maintaining high quality.

    Please stop the unfounded China bashing: the country's industries have been quickly becoming very competent at high quality production as well as churning out $2 Wal Mart items.

    1. Re:ThinkPad's have been made in China by Anonymous Coward · · Score: 2, Interesting

      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!

    2. Re:ThinkPad's have been made in China by Anonymous Coward · · Score: 2, Insightful

      By that reasoning, one should also avoid all products made in the USA, as buying them funds state terrorism and human rights violation.

    3. Re:ThinkPad's have been made in China by petermgreen · · Score: 3, Insightful

      sad as it is such phases seem to be almost a natural part of a countries development.

      Britan went through it (industrial revoloution anyone?). The USA went through it (railroad companies anyone?) As each country develops it seems to go through a phase where is competes purely on price and things like workers rights be damned.

      why do people work in such situations? because they consider it better than the alternatives! I cant see how not buying from such countries helps the workers there.

      --
      note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
  11. Is Red Flag Linux? by amightywind · · Score: 2, Funny

    it seems likely that they won't play ball with Microsoft and will offer machines with no OS or with Linux pre-installed.

    Yah, you get Red Flag installed for free, and a BIOS to protect the user from any OS not approved by the Party. Can't wait, comrade.

    --
    an ill wind that blows no good
  12. Which machines do they get? by LWATCDR · · Score: 2, Interesting

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

    --
    See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
  13. Off to a bad start by TheBeginner · · Score: 2, Interesting

    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.

    --
    14 digits of Pi are all we need.
  14. irony.... by gsfprez · · Score: 3, Insightful

    1984: apple puts out 1984 commercial decrying IBM as Orwellian PC maker stifling industry.

    2005: IBM NO LONGER MAKES IBM compatible personal computers... They now they make Apple Power Macintosh and iMac computers.

    --
    guns kill people like spoons make Rosie O'Donnell fat.
    1. Re:irony.... by AgNO3 · · Score: 2, Informative

      umm, selling apple a processor (which they have done since the first PPC. The 701 came from IBM not moto.) is not making the computer.

      --
      OMG Ponies!!! with Glitter!!!! I miss Pink :-(