a journal of a researcher

Sunday, December 12, 2004

Lenovo bought IBM PC business

Chinese manufacturer Lenovo bought IBM PC business for US$1.8 B. This makes Lenovo the third PC manufacturer after Dell and HP. Here is a good analysis article (recommended by Daniel).

It is a surprise but reasonable thing. For IBM, Lenovo is the best buyer to make the its PC business survive. For Lenovo, it got all the technology in this domain, and most important, the starting date to go to the world. People are expecting this date. Now it is today.

I do not know from when semi-conductor manufacturing becomes the strategic technology for China. But from the IST conference, after I attended the Chinese networking session, this trend is clear to me. China is seeking the technology for designing and manufacturing chips and high performance computer.

In contrast, India focuses on service-oriented industry, such as software engineering, produce engineering, account services, call-center services, health care services.

For the industrialized countries, the world competition pushes them to even higher end business. Innovation and, knowledge-oriented economy has to be their focus. The requirements to highly educated people will become more important. They also have to be an open society to attract people from the world to win the world competition.

11 Comments:

  • I agree. However, the technology itself is more important than the manufacturing in my mind. There is no authentic chip manufacturer in mainland China. All in there are product lines of other companies from other places. Why don't the big companies in mainland develop their own technologies in manufacturing? I think the reason is simple, the investment for research and development is much higher than simply buying products from other manufacturers. There are very good chip companies in Taiwan such as VIA which bought the third biggest CPU manufacturer Cyrix several years ago. I had some experience with PCs from Legend, the former brand name of Lenovo, I have to confess that it was not a good experience.

    Buying big brand name will not solve essential problems for Lenovo even it is so-called third biggest PC dealer, concentrating on the real technology is the key thing to become an authentic global competitor.

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