Feeds

IBM, Lenovo ponder world desktop PC JV

Economies of scale

  • alert
  • submit to reddit

IBM and Chinese PC maker Lenovo are discussing ways the two might co-operate to boost their share of the desktop market in China and around the world, reports in the Far Eastern press suggest.

According to separate reports in the Chinese-language Commercial Times and Economic Daily News, the two PC makers are in talks centring on the foundation of a dual-brand joint-venture.

Details of the plan remain scarce, but CT suggests the following scenario: Lenovo buys the share China's Great Wall Computer holds in International Information Products Company, an existing JV with IBM. After the acquisition, IIPC becomes 'Lenovo-IBM', 'IBM-Lenovo' or some such.

According to IDC, IBM and Lenovo command 4.4 per cent and 3.4 per cent, respectively, of the never more commoditised world desktop PC market, well behind Dell and HP. Bringing their businesses together would still leave them with roughly half of HP's market share - 14.9 per cent - but would lift the JV above the heads of other rivals.

In China, Lenovo has led the field for some time, beating down all the well-known Western PC vendor names. But over the last few years the rapidly growing Chinese PC market has encouraged plenty of home-grown competition, resulting in very fierce price wars. In August, Dell - which knows the low-end PC business better than anyone - was forced to cut its losses and escape that segment of the Chinese market to focus on high-end kit such as servers.

A deal with IBM might bring Lenovo the kudos it may believe it needs to pitch for that higher-level business. ®

Related story

Dell drops out of China's low-end PC market
AMD bags Chinese giant
Dell re-enters the blade-o-sphere
Dell 'to add' AMD CPUs to product line - CEO
IBM puts Blue Genes up for sale

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.