IBM CONSIDERS EXITING THE PC BUSINESS
IBM is reportedly negotiating a possible sale of its PC unit to Chinese PC maker Lenovo Group, though neither company is commenting publicly at this time. If such a transaction takes place, it would mark the end of IBM's storied history with the PC, a market currently led by Dell and
HP. Analysts consistently agree, however, that the move would be good for IBM, which has made no secret of its intentions to focus on higher-margin operations such as software and computer services. In particular, IBM executives have identified business process outsourcing as a key opportunity for the company. For its part, Lenovo stands to benefit significantly from acquiring IBM's PC business, which has in recent years migrated much of its production to China. If such a deal
goes through, Lenovo would have access to U.S. markets, which have traditionally been out of its reach, and would also own the very popular ThinkPad series of notebook computers. As noted by IDC analyst Roger Kay, in such a deal, "the IBM notebooks would be the prize."
CNET, 3 December 2004
CNET, 3 December 2004
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