Why IBM sold its PC business 30

Because the PC business only accounts for a small part of IBM's sales share of the industry, the PC business is not IBM's main revenue industry, and the ThinkPad PC business can be sold to Lenovo for $1.1 billion.

Everyone only saw the PC, but did not see the real products of IBM - small computers, mainframes!

I am Shenzhen IBM after-sales, responsible for UNIX, AIX system, the following facts!

IBM sells PCs because it is losing money globally, and only in China in the Asia-Pacific region.

China likes to pursue new products, likes to show off, and only in China is profitable, while in Europe and the United States, Dell sells very well, and abroad pursues practicality!

Therefore, factors such as global losses, high prices, etc., Dell is cheap and has good after-sales service, and beats IBM in batches.

And this kind of thing that doesn't make much money, IBM is not worth continuing to invest a lot of energy!

You have to understand that the PC is not even 3% of IBM's total business, and IBM's real money-making minicomputers, such as eServer P570 with a 16C cost, P590 with a cabinet minicomputer more than two meters high, and a 64-core CPU cost more than 3 million.

There is also IBM's operating system, AIX HA software, and so on. The most important thing is the minicomputer service, after a core minicomputer of China Mobile goes down, all call services will be interrupted, at this time, IBM engineers go out, mobile pay 5000 US dollars per hour! Get back to business in 2 hours!

PC losses are one reason, and at the same time, IBM is now moving its work center to software services, that is, software as a service SaaS, which is a trend in the future.

Loss! IBM focuses solely on technology development.

Do not pay attention to the needs of the market and consumers.

That's why it was abandoned by individual users.

As a result, after being sold to Lenovo, the application of new technologies was discarded.

This piece will be considered over in the future.

Because I can't make money, and because people are transforming into services.

The losses are serious, and the shareholders are not satisfied

Hello dear Iwawa Glad to answer for you. In 2005, due to IBM's new plan and layout, Peng Mingsheng sold IBM's PC business to Lenovo Group. Although the PC business sold only 100 million US dollars, IBM's total revenue that year was as high as 90 billion US dollars; But as the company's most iconic asset since the 1980s, IBM's move on the PC became a historic moment like the Edison-founded chain fight General Electric selling its lighting business or Disney shutting down its animation business.

Since then, Peng has spent $14 billion to acquire more than 20 companies that provide a variety of "business analysis" services. After nearly three years of exploration, Peng Mingsheng quickly found a market worth $500 billion: not only to provide IT-related services for enterprises, but also to further help enterprises change their business processes and outsource functional departments other than their core business.

At the same time, Peng Mingsheng also changed IBM drastically, not only revising some of the strategies of the Gerstner period, but also making trade-offs and updating some of IBM's traditions. All of this is seen by business observers as a farewell to the traditional blue giant.

The global PC business has been acquired!! This is a matter of business operation. Only single-mindedness can have a great future for development.

IBM is not making money in the PC industry and losing too much, and it is boring in the server industry, with large profits, and it needs to drag in considerable technology and human resources. Juesheng happened to be Lenovo's need to expand its business globally. So it should be a very successful trade.

IBM's personal PC business refers to IBM's business for personal computers, including notebooks, desktop computers and all-in-one computer business formats, but does not include servers, industrial computers and blade computers for enterprises and other departments.

IBM's abandonment of personal PCs is based on IBM's third platform transformation, IBM believes that desktop computers will become less and less important, and the era of cloud computing is coming. In view of this, IBM decided to abandon the desktop PC business altogether.

Lenovo acquired it for the following reasons:

1) The domestic personal computer market has encountered a bottleneck.

2) International development strategy, mergers and acquisitions have become the first choice for Lenovo's internationalization path.

3) The need to develop brand, technology, and marketing channels.

What drove the Lenovo acquisition:

1) The scale effect will benefit Lenovo.

2) The increase in Lenovo's goodwill is greater than the cost of the acquisition.

3) Lenovo's need to enter the international market.

4) Management drive.

It's IBM's pen.

Transcription book and desktop computer and all-in-one computer business (excluding servers, industrial computers, and blade computers).

It's mainly hype,People's core technology has not been transferred to Lenovo at all,You compare the thinkpad series,The previous IBM brand (boutique) and now the Lenovo brand (garbage) will know。

Lenovo Group issued a statement saying that the PC field still has great potential for development. Liu Chuanzhi, chairman of Lenovo Group, did not deny the possibility of Lenovo acquiring HP's PC business in a recent interview, and he said that active mergers and acquisitions are a necessary way for the development of enterprises.

3 AllIn August 1981, IBM entered the PC market with a storm. Previously, Apple, which has dominated the PC market for 5 consecutive years, advertised on the mainstream of Wall Street: "Welcome IBM to the PC market!" Qiao Busi sighed bitterly, it was as if Little Red Riding Hood was welcoming the arrival of the big bad wolf!

Sure enough, IBM took only one year to seize the throne of the "PC king" that originally belonged to Apple. Before the PC, IBM has always implemented a policy of strictly blocking technical data for all models of its computers, but in the PC market, IBM has gone against the norm and carried out "technology openness", making all the technical specifications of hardware and software public, and adopting the DOS operating system provided by Microsoft. IBM has set the industry standard in the PC market and has promoted a large number of rising stars, the biggest beneficiaries of which are Microsoft and Intel.

Since then, the PC era has arrived.

It's not being acquired, it's IBM that is going to be sold.

All the computer parts were acquired by Lenovo because IBM computer sales have been losing money for several consecutive fiscal years, and because the department is too large, it is difficult to achieve a turnaround in the short term, which is a big burden. Lenovo is eyeing IBM's brand awareness. Just like Apple, it's not just a product, it's a culture Not only notebooks, but all PC divisions, including desktops, were acquired by Lenovo.

Because the PC business is no longer IBM's main business, it is like a millionaire who started selling newspapers, and later made real estate, will he still sell newspapers? This will only affect his energy and affect him to make more money.

IBM has now focused much of its efforts on providing consulting and acquisition turnaround services from a hardware science and technology perspective. The new IBM's efforts to enhance its global distribution capabilities in the course of consulting, software and technical services are strongly reflected in this change.

Lenovo's acquisition of IBM PC's motivations, integrations and implications.

In my heart, IBM is a symbol of high quality and has high customer loyalty; Lenovo can launch Lenovo's low-to-mid-range brands in the international market.

According to IBM's filings with the Securities and Exchange Commission, the PC business it sold to Lenovo Group has been losing money for three and a half years, with a cumulative loss of nearly $1 billion. Lenovo acquires IBM

The PC business was profitable after three months, which meant that the integration after the merger was initially successful.

1 Strategic M&A is the key to successful M&A.

Internationalization has always been Lenovo's long-term strategy. In 2001, the company vision of "high-tech Lenovo, service Lenovo, and international Lenovo" was proposed, the technological innovation conference in 2002, the new English logo (Lenovo) was launched on April 8, 2003, and the international Olympic Games partner was signed in 2004, all of which are part of Lenovo's internationalization. The acquisition of IBM

PC is a continuation of Lenovo's internationalization strategy and a fitting decision made by Lenovo's top management at the right time.

2. Reasonable selection of target enterprises is the foundation of successful mergers and acquisitions.

The PC business is loss-making, why does Lenovo dare to take over this "hot potato"? IBM's PC business has a gross profit margin of 24% but no money to make, and Lenovo's gross profit margin is only 14 but has a net profit of 5. IBM's loss at such a high gross margin is due to its high costs

First, the systemic cost is high. The management expenses of the entire IBM are apportioned to its various business divisions, and the gross profit margin of the PC part is much lower than that of other business divisions, and the profits are diluted, but Lenovo does not have this part of the expenses; Two? BM has always been high input, high output, and spending money lavishly, so the management cost is high.

For example, to produce a PC, IBM costs $24, and Lenovo only costs $4; ibm

The PC pays $200 million a year to the headquarters for information management, and there is a lot of room for compression. ibm

The business of the PC itself is good, and Lenovo has a strong ability to control costs, and the combination of the two can greatly reduce costs and quickly achieve profitability.

What China's enterprises lack most in the world is brand and technology. The core technology is controlled by others, which is the hidden pain of Lenovo's growth. Through the acquisition, Lenovo has acquired assets that need to be accumulated over many years:

High-end brand, core technology. Lenovo can do business on the platform built by IBM in the future, and it can be said that Lenovo has stood on the shoulders of giants.

From the early days of its establishment, Lenovo has put forward the development idea of "trade, industry and technology". Through the acquisition, Lenovo has access to IBM's two R&D centers in Japan and the United States, as well as related patents, which is one step closer to its original goal.

3. Strong complementarity between the two parties is the basis for the success of mergers and acquisitions.

1) IBM's business is all over the world, while Lenovo's previous business was concentrated in China; (2) IBM's best products are high-end notebooks, and Lenovo is desktops; (3) Most of IBM's services are high-end customers.

Naturally, the technology and sales network of the IBM PC division are valued.

Increase market share and brand influence.

IBM's PC division lost $100 million in 2001 and $100 million in 2002. Dell became the leader of the PC sales market by direct sales, and HP was talking about merger with Compaq at the time, although IBM produced the world's first PC in 1981, but it had long lost its position as the leader in the PC sales market, and IBM CEO Palmisa realized that personal computer sales were already sunset, so he decided to cut off this rotten meat. In terms of face washing, it is also in order to enter the international market, and the PC market share in China is also declining, and there is a tendency to be overtaken by Dell.

I don't think IBM has any disadvantages at all, and the final negotiated purchase price was 100 million US dollars, which is equivalent to 100 million Hong Kong dollars at the exchange rate at the time, and Lenovo's net assets were less than 4.5 billion Hong Kong dollars at that time, and the ** of 100 million US dollars was calculated like this: 100 million US dollars in cash, 600 million US dollars Lenovo Group** and 500 million US dollars in debt on the books of IBM's PC division. In other words, IBM sold its PC division to Lenovo, cashed out $100 million, and became Lenovo's second largest shareholder.

In addition, IBM's PC business did not include the X series products in mergers and acquisitions. That is to say, IBM can still continue to sell PCs.

The saddest thing was that Goldman Sachs, IBM's M&A adviser at the time, gave Lenovo loans to 16 banks, and three of the preferred shares owned by the investors received fixed cumulative cash dividends paid quarterly each year before the conversion. And the board of directors is practically in their hands.

In 2005, Lenovo's total assets were 100 million Hong Kong dollars, and the debt ratio was 100 million Hong Kong dollars for outstanding long-term bank loans and 100 million Hong Kong dollars for short-term loans. Lenovo was fooled... This ** is his acquisition of IBM, it is clear that IBM acquired him, and he has to work for generations of IBM...

First: Lenovo has seen the trend after the acquisition of IBM PC, the growth of personal computers is higher than the growth of enterprise users, IBM PC is mainly sold to large enterprise customers, not sold to personal consumption, after buying IBM must make up for this shortcoming. This requires the R&D direction and chain transformation from selling commercial PCs to selling consumer PCs.

The entire renovation cost about $800 million, and the professional manager of the CEO at the time was on hold, and he was more concerned about the company's performance statement. "Emerging markets are developing fast, and they should be fighting to seize them, but the CEO didn't pay attention to this at the time. "The way emerging markets play is not to make profits, but to have shares.

In this case, the performance table will not look good, and Lenovo has encountered a long-term investment problem.

Second, the cultural background and operation of different run-in issues, the difference between Chinese and American corporate cultures to achieve business integration.