toggle

AAPL Stock: 559.19 ( -6.13 )

IBM sells PC division to China's Lenovo Group

updated 08:00 am EST, Wed December 8, 2004

IBM sells PC division


China's Lenovo Group Ltd. on Wednesday signed a definitive agreement to , according to IDG News Service: "Lenovo will pay US$1.25 billion in cash for the business, which is expected to transform it into the world's number three PC maker...In addition to money, IBM will also take a 18.9 percent stake in Lenovo. The cash and equity combined brings the total value of the deal to about $1.75 billion. It is expected to be completed in the second quarter of 2005....IBM and Lenovo said customers will see no change in product availability and support, either while the deal is being completed or afterward, while the PC operations of the two companies are integrated."


by MacNN Staff

print
email
(16)

TAGS :

 industry

Related Articles

Recent Articles

toggle

Comments

  1. bigpoppa206

    Fresh-Faced Recruit

    Joined: Jun 2003

    0
    12/08, 09:36am | report spam | Reply |

    cool!

    now what?

  1. macimmortal

    Fresh-Faced Recruit

    Joined: Aug 2001

    0
    12/08, 10:18am | report spam | Reply |

    Microsoft's doing...

    imho, this is just more fallout from the illegal anti-trust practices that Microsoft pulled on IBM in the early to mid-90s.
    Nice of GWB to just slap Microsoft on the wrist instead of actually providing justice.
    But then again, what do we expect from a leader that staffs his entire cabinet with ex-ceo's of corporations.
    Welcome to the United States of Corporations

  1. Lyra

    Forum Regular

    Joined: Jul 2000

    0
    12/08, 10:35am | report spam | Reply |

    Uh

    And this means what for the Mac user?

  1. JohnnyFive

    Fresh-Faced Recruit

    Joined: Feb 2003

    0
    12/08, 10:38am | report spam | Reply |

    Will they keep the name?

    Or will this be another Lexmark saga?

  1. trevc

    Fresh-Faced Recruit

    Joined: Mar 2000

    0
    12/08, 10:57am | report spam | Reply |

    superpower


    Some say China has already surpassed the U.S. as the Economic super power, amoung other areas.

    These kind of acquisitions just funnel more money out of North America, but I would think ultimately may benefit Dell and HP.

    Yea, not sure what this means to a 'Mac' user but since they're not selling their chip business, I'd guess nothing?

  1. Feeling_Macish

    Fresh-Faced Recruit

    Joined: Mar 2004

    0
    12/08, 11:38am | report spam | Reply |

    For the Mac user it means

    A tougher Chinese market to crack... Lenovo will be selling even cheaper PCs to the Chinese, who, unlike the Japanese and the Thais, have very little empathy for good design when it costs them an extra dollar. Institutional cheapness before pride. That, plus their ethic of only running whatever software they can pirate (which is mostly Windows-based) means that Apple will have an even tougher time winning market share in China. Here's hoping some other third world country gears up quickly to steal a good portion of the multinationals currently manufacturing stuff in China. It's too bad that Russia is geographically landlocked and corrupt and without transportation infrastructure - they have 10 times as many smart people there with 1/10th the population.

  1. Go Bells

    Fresh-Faced Recruit

    Joined: Jun 2004

    0
    12/08, 12:58pm | report spam | Reply |

    China surpasses USA?

    http://www.photius.com/rankings/gdp_2003_0.html

    Hmm.. I saw Trevc's comment about how some folks think China has surpassed the United States as an economic superpower... You know I had to google that.. Looks like the US has DOUBLE the GDP of China last year.. Why would anyone think that China has surpassed the US as an economic superpower?

    Ok, so if I work for a large corporation, looking to purchase $200,00 to $5 million worth of PCs over then next 18 months, and up until now, have been trying to decide between Dell, HP and IBM... Why would I now choose IBM, given this news?----- God, Dell and HP have to be loving this.

  1. MacScientist

    Junior Member

    Joined: Feb 2000

    0
    12/08, 01:49pm | report spam | Reply |

    For the Mac user it means

    In response to Feeling Macish:

    If you had bothered to read, you would know that Lenovo is moving its headquarters to New York.

    Lenovo may be big, but they are by no means the first to sell cheap PC clones in the Chinese market. There is just no basis in fact to suppose that Apple's prices in China next year will be any more of a disadvantage than they were last year.

    For all the wild@$$ conjecture in your post, you scrapped the bottom of the ooze with the notion that for all its problems Russia has more smart people than China. Is there anything besides ignorance and racism to justify such a statement?

    And just to clarify another issue, China does not have nearly 10 times the population of Russia.

    Check your facts about China at http://www.cia.gov/cia/publications/factbook/geos/ch.html#People

    Check your facts about Russia at http://www.cia.gov/cia/publications/factbook/geos/rs.html#People

  1. notehead

    Fresh-Faced Recruit

    Joined: Aug 2001

    0
    12/08, 03:26pm | report spam | Reply |

    No diff for Mac users

    China's GDP is half of the US's at the moment, sure, but the rate that China's economy, infrastructure, industry, etc, is growing makes it pretty clear that they are well-postioned to surpass the U.S. in a few years. Surely that had some bearing on IBM's decision to go with a Chinese company. (The fact that they are moving their headquarters to NYC isn't particularly relevant.) People in many other Asian countries that used to come to the U.S. to get degrees and learn English, are now going to schools in China and learning a Chinese language. China is ascendant, folks, and India is not far behind them.

    I suspect that, eventually, some of Japan's fascination with high-tech and good design will be adopted by a certain artsy segment in China, and Apple will make roughly the same inroads there that they would have made even if IBM hadn't sold it's PC business.

  1. cebritt

    Fresh-Faced Recruit

    Joined: Mar 2000

    0
    12/08, 03:47pm | report spam | Reply |

    Old Chinese saying...

    ... 50 years is not too long to wait to get even.

    Who would have thought that IBM would get out of the PC business before Apple?

Show More Comments

Login Here

Not a member of the MacNN forums? Register now for free.

 
close
Photo
toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

iHome iW2 AirPlay speaker

iHome generally isn't known as a luxury brand when it comes to audio, but it is prolific -- the company's docks and speakers are every ...

Logitech Ultrathin Keyboard Cover

One of the iPad's main weaknesses has always been productivity. It's not a question of apps; while it has taken a little time for a na ...

Logitech UE Air Speaker

If maybe a little more slowly than Apple would like, AirPlay is becoming a staple of the wireless speaker market for iOS devices. The ...

toggle

Most Commented

 

Popular News