Hi
IBM plan to sell IBM PC Co that sell X86 PCs.
Does this mean IBM will focus its product on PowerPC, Power, Mainframe and super computers?
Is this an end to IBM PC era? (24 years)
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ZDNET.CO.UK:
It looks increasingly likely that the company that brought us the personal computer as we know it is going to sell off its PC unit, possibly to Chinese group Lenovo.
IBM, which gave legitimacy to the personal computer business in the 1980s, is said to be negotiating the sale of its PC unit in a move that could reshape the industry.
The company is negotiating with Chinese manufacturer Lenovo Group, formerly known as Legend, and at least one other buyer to sell its PC business unit, according to a report in Friday's New York Times. The unit could fetch as much as $2bn, the report said. IBM spokesperson Clint Roswell on Friday said that the company's policy is not to comment on rumour or speculation. Representatives at Lenovo were not available to comment.
Exiting the PC business or establishing a joint venture in China would make sense for both companies, analysts said.
Such a deal would free IBM, which has been moving away from commodity products, from managing a difficult and often money-losing venture, while still giving it access to desktops and notebooks to provide to its customers.
"The PC business is a sort of also-ran, me-too sort of business [for IBM]. There are a lot better businesses, including global services and some of the larger computers, that IBM participates in," said Roger Kay, an analyst with IDC. An agreement would "get IBM out of what they think of as a non-strategic, non-yielding business".
Other analysts said that a joint venture, rather than an outright sale, would make more sense for IBM. "While we believe IBM is seeking to enhance [its PC group's] profits, Big Blue may not elect to sell the entire business and could structure a creative deal in pieces or in terms of distribution," said a research note released Friday by UBS Securities analysts.
