China's Biggest Computer Maker Announces Acquisition of IBM's PC Business

AP ^ | Dec 7, 2004 | Stephanie Hoo

[Happy2BMe]

BTTT

[ninenot]

Does it make sense to buy a new $1,000 machine/laptop every three or four years?

Certainly does to the SELLER...

I have trouble figuring out exactly why I should buy a new cellphone. The new keypads are right-sized for my grandchild's fingers, and who the blazes needs pictures?

[johnb838]

The PC and semiconductors are buggywhip industries. we don't need them, or their jobs. we have plenty of jobs here.

[johnb838]

Actually, that sounds like a great brand name: "ChiCom Computers"

[ninenot]

If our economies are intertwined, I would expect our relationship with China to be valued by the leaders of both countries

An eventuality which is contradicted by most of human history, but hey!! Enjoy the thought while you can...

[Havoc]

More road signs for the moron free-traitors to read. As has been repeated over and over, they're not investing in our businesses anymore, they're buying them up. They have controlling interest in IBM now. How much more of our economy has to be subverted by China, India and Mexico before people do something. I got a pretty good idea.

[chimera]

We invented the PC, perfected it, produced it, but now it's time to move on.

Right. Away with these buggywhip industries like computers. They're only good for things like building businesses, national defense, weapons simulations, all that kind of useless stuff. We don't need that anymore. We can trust the Chinese and whoever else is out there not to blow us up.

Move on, yes. I hear Hardee's is coming out with a new Monster Thickburger. Plenty of burger-building jobs for those displaced EEs and system engineers.

[Wolfie]

In fact, the two biggest "private" employers in the US are Walmart and McDonalds.

That's why the Powers That Be are anxious to ship all manufacturing to the Far East. Ya need all that super cheap stuff in a Wal-Mart econonmy, since that's all your workers can afford.

[international american]

We both say this, and get ridiculed for it:)

[dennisw]

TRANSLATION:
IBM has Lenovo building it's PC computers for some years and Lenovo stole all the technology. IBM knew they would probably do this. So now Lenovo says they will build and sell under the IBM name and will pay IBM for that right. Lenovo reaps the profits as it sells PCs in Asia and the 3rd world.. eventually the US too.

[BlazingArizona]

Screw the Chinese Communists and their computers. I'll build my own machine.

And even if you price your time at $0, you will pay more than if you were to buy a "Dinkpad" from this new company.

[WilliamofCarmichael]

RE: "China has little experience in managing a free economy."

Thank you for the informative post about "disruptive technology."

About your "free economy" comment. I believe that is is true that we do not recognize China as a free market economy.

Also Lenovo, like most (all?) major enterprises in Chins, is owned by one government entity or other which are controlled by the Party. That is, the major owners are Chi-com government lackeys of the Chinese Communist Party.

You ask, "What's going to happen when they encounter the inevitable recession, currency crisis, or whatever?"

Ans: another Great Leap onto the backs of tens of millions of their own citizens killing them as has been the wont of Chi-coms for more than fifty years.

Deng's Chi-com version of a new economic plan (NEP) changed nothing about the nature of communism. It only invited useful idiots like IBM managers to transfer their technology to the "people." to start up enterprises beginning years ago. IMO.

[WilliamofCarmichael]

Lenovo, founded in 1984 by a group of scholars at the government-backed Chinese Academy of Sciences in Beijing, is China's biggest computer maker and is also the biggest in Asia. Its shares are traded in Hong Kong.

Now for the rest of the story.

Legend Group Holdings, which is controlled by the Chinese government, owns a majority stake in Lenovo. http://biz.yahoo.com/ic/56/56726.html

Gee, I wonder how long it will take the hyphenated groups to get out demanding that Lenovo be permitted to put their own people on contract to finish any defense contracts IBM has for their PC division.

[Golden Eagle]

IBM simply can't be trusted. This is further proof.

First they try to destroy the US-based UNIX software industry by building up the foreign clone Linux to replace all proprietary UNIX software. Now they're "selling" the most advanced PC hardware operations in the world straight to the Chicom government. Unfortunatley, many right here on this forum will continue to defend them, and personally attack folks like me who are concerned about what is happening right in broad daylight.

For those wondering where I've been the last few months, all three levels of my house suffered massive damage from a hurricane. We may finally finish repairs by January.

[durasell]

I have a friend who has been making his own desktops for ten years. Basically they cost about a third of what a similarly powered "store bought" costs and he enjoys it. He isn't an "over clocker" is anything like that, he just enjoys making them. And, he's gotten to the point where he can put one together in a couple of hours.

Like you said, off topic -- but it does show that computers are now commodities.

[WRhine]

TRANSLATION:
IBM has Lenovo building it's PC computers for some years and Lenovo stole all the technology. IBM knew they would probably do this. So now Lenovo says they will build and sell under the IBM name and will pay IBM for that right. Lenovo reaps the profits as it sells PCs in Asia and the 3rd world.. eventually the US too.

Very insightful take on the real story behind IBM's decision to formally sell their PC division to the ChiComs.

[Paul Ross]

With speculation about the impending deal mounting, IBM's stock fell $1.57 per share to $96.10 in Tuesday's trading on the New York Stock Exchange.

Doesn't sound like a good deal to the market either. The "outsourcing" business is about to run out of things to outsource.

[jpsb]

"Screw the Chinese Communists and their computers. I'll build my own machine."

Yea, with Chicom parts. Well the free traders will be happy, no more USA PCs, no more USA jobs making PCs, but PC's will be cheap ...... until the Chicoms pull the plug.

[Paul Ross]

With speculation about the impending deal mounting, IBM's stock fell $1.57 per share to $96.10 in Tuesday's trading on the New York Stock Exchange.

Doesn't sound like a good deal to the market either. The "outsourcing" business is about to run out of things to outsource.

Meanwhile we know what is going to happen to the remaining U.S. personnel of the IBM PC fabrications division.

[Dat Mon]

"Like you said, off topic -- but it does show that computers are now commodities."

Ill go you one better...virtually all the consumer electronic products we use are now becoming commodities.

The consumer electronics market...if trends continue...will be virtually carved up by a number of Asian / Chinese companies.

Lenovo and a few other Chinese companies will eventually be manufacturing most of the PCs for global consumption. (Dell will be manufacturing in China) There may, however, be IBM chips in some of these computers...perhaps their high end servers.

Ive posted before about Flextronics...an engineering manufacturing service company. Simplified, their goal is to design and manufacture a $39 DVD player, or any other new commodity electronic product, using their own components and semiconductor chips (Chinese semiconductors)

Lets face it...this means that the developing nations that represent a future large global marketplace will be buying Chinese produced products, designed by a host of engineers from India, China, and Eastern Europe.

As I said...that IMHO is the trend here. What actually happens is dependent on a whole host of socio-political-economic factors that occur in the next few years...including China and her military intentions with Taiwan. At some point...many Americans may simply refuse to buy cheap Chinese goods. provided they are given a choice.