IBM selling its PC business?
updated 08:25 am EST, Fri December 3, 2004
IBM PC biz for sale
IBM has put its and is currently in serious discussions with Lenovo, China's largest maker of PCs and at least one other potential buyer for the unit, according to a report in The New York Times "...a sale would nonetheless bring the end of an era in an industry that it helped invent. The sale, likely to be in the $1 billion to $2 billion range, is expected to include the entire range of desktop, laptop and notebook computers made by IBM. ....A sale of the personal computer business would be a step away from I.B.M.’s traditional emphasis on the size of its revenue as a measure of its corporate power. The PC business represents about 12 percent of I.B.M.’s annual revenue of $92 billion."
Fresh-Faced Recruit
Joined: Apr 2001
Apple: Buy this unit
12% of $92 Billion is over $11 Billion. That's a lot of revenue.
I think Apple should buy this business.
For $2 Billion, Apple could double their revenue.
They would become their own competitors, but they would also be their own best partner. Think of how happy Apple is to have HP bundling iTunes on their computers. Now Imagine if "IBM" brand computers we all pre-loaded with Rendezvous, iTunes, and QuickTime.
They would also double their buying power. Many of the components that Apple uses are commodities. As one of the top ten computer companies, their prices are low and their bargaining power isn't bad. As one of the top three, the prices would be even lower.
This would also give Apple much increased stability. Having a solid 92 billion dollar Wintel PC business would stop critics from saying Apple is near death every few months.
Given Apple's usual margins, Apple could make this $2 Billion dollar investment back very quickly. The other benefits make it an even more obvious choice.