Report: IBM puts PC business up for sale

“International Business Machines, whose first I.B.M. PC in 1981 moved personal computing out of the hobby shop and into the corporate and consumer mainstream, has put the business up for sale, people close to the negotiations said yesterday. While I.B.M. long ago ceded the lead in the personal computer market to Dell and Hewlett-Packard so it could focus instead on the more lucrative corporate server and computer services business, a sale would nonetheless bring the end of an era in an industry that it helped invent. The sale, likely to be in the $1 billion to $2 billion range, is expected to include the entire range of desktop, laptop and notebook computers made by I.B.M.,” Andrew Ross Sorkin and Steve Lohr report for The New York Times.

“The retreat from the business may be the ultimate acknowledgement that the personal computer has become a staple of everyday life, a commodity product, yielding very slim profits. The companies that make the most money from PC’s these days are Microsoft and Intel – whose software and chips are the standard for most of the personal computers sold, regardless of the maker,” Sorkin and Lohr report. “According to the people close to the negotiations, I.B.M. is in serious discussions with Lenovo, China’s largest maker of personal computers, and at least one other potential buyer for the unit. Lenovo was formerly known as Legend.”

Full article here.

MacDailyNews Take: Imagine someone saying in 1984, “in two decades Apple will still be making Macs and IBM won’t even be in the PC business.” Who would have believed it?

31 Comments

  1. Wrong!!! “whose first I.B.M. PC in 1981 moved personal computing out of the hobby shop” That was Apple, the PC was a catch up player as the BigIron men got worried about loosing control of the corporate desktop

  2. er.. It is what it is, man.. IBM had the brand equity in the 80’s in offices around the globe… Apple had cool machines that were selling like mad…

    It was IBM that legitimized the PC as a business tool though.. which only makes it ironic, because they hated the PC industry…

  3. The only thing I care about is if or how this will effect IBM’s chipmaking business, and the production of future chips for Apple desktops and laptops. Anyone want to take a stab at that?

  4. hmmm, well I guess that’s one of the 3 PC companies that are going to fade into non-existence, I wonder what the other 2 re going to be?

    At least they’re not going out of business, but I wonder if this will stir things up for that prediction.

  5. Maybe IBM will finally be able to concentrate on making chips now that it’s trying to leave the pc business! yes more switchers coming over!! lol not that i know this just pure speculation

  6. “The only thing I care about is if or how this will effect IBM’s chipmaking business, and the production of future chips for Apple desktops and laptops. Anyone want to take a stab at that?”

    It doesn’t. The desktop/laptop PC business is using Intel chips, not IBM Power architecture chips. IBM uses their own chips for the high end server and supercomputing products.

  7. critic-thx for putting that perpesctive, I forgot about that! well @ least now they are saving money instead of spending it on intel! Hopefully this means they will invest in providing chips faster for apple! I heard yesterday about some powereverywhere conference, where the “G6” was being tlking about.(this was from appleinsider) they said that will start of @ 6ghz!! can you imagine that!! crazie!!! good times ahead my fellow mac users!

  8. IBM has committed itself to LINUX and has no desire to play in the desktop market, where margins are paper thin. With their desktop line out of the way, they will be free to sell other companies desktops on system contracts. Mac on the Desktop and Linux on the Server sounds great to me.

  9. I wonder who came up with the name “Lenovo”, it sounds like some soviet-era airliner. Hopefully someone will rebrand it with something that sounds less ominous.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.