Feeds

IBM said to be in PC divison sell-off talks

JV with Lenovo seems more likely than a sale

  • alert
  • submit to reddit

Next gen security for virtualised datacentres

IBM has reportedly put its PC business up for sale, 23 years after launching the first computer to carry that name.

According to a Financial Times report today, citing sources close to the negotiations, IBM is in talks to sell off its desktop and notebook lines.

It's certainly talking to Chinese PC vendor Lenovo, the sources said, confirming earlier reports that the two firms were in talks. Those discussions were thought to centre on a partnership to produce PCs for the Chinese market, but there were hints that the talks also took in the possibility of a worldwide alliance.

However, the original reports pointed to a joint venture rather than the sale of IBM's PC division to Lenovo or another company, as the FT's sources paint the situation.

Either way, the deal ultimately hinges on the use of the IBM brand. Without that name, or others, such as 'ThinkPad', the company has little to offer beyond facilities. Certainly the products it offers are, by and large, little different from anyone else's, which is largely why IBM has fallen behind the likes of Dell and HP. Such is the nature of a commodity market, particularly one where margins are so slim.

Still, IBM doesn't do badly out of its PC sales - it makes around $11bn a year from PCs - which makes an outright sale seem less likely. Indeed, IBM is currently the world's third most successful PC maker, with a 5.6 per cent share of the global market. That's a long way behind market leader Dell's 16.8 per cent share and number two-placed HP's share, 15 per cent.

However, a JV designed to capitalise on economies of scale to make PC production cheaper for both parties makes far more sense, particularly as a number of market watchers, most notably Gartner, are forecasting a big downturn in the PC market in the coming years. If that's the case, consolidation is going to appear on a number of PC makers' agendas.

IBM would not comment on the sources' claims. ®

Related stories

IBM, Lenovo ponder world desktop PC JV
IBM to Power China
Consumers shun PCs for gizmos
Merrill Lynch looks to 'killer' Apple home media server
World chip sales edge up in October
Dixons to offer Philips Wi-Fi PCs

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.