IBM PC unit sale should be exploited, says Gartner

'Push hard for a better deal'

Post a comment
Print

By Andy McCue, 10 May 2005 15:10

NEWS Businesses should exploit the recently completed sale of IBM's PC unit to Chinese manufacturer Lenovo by bargaining hard for a new deal, according to Gartner.

The $1.75bn deal completed on 1 May makes Lenovo the third largest PC manufacturer worldwide. Gartner said most customers will see little difference but added that Lenovo is under pressure to increase profits to justify the deal.

A research note stated: "Lenovo faces significant challenges, including the need to increase profits by two per cent by the second half of 2006 to fund growth and withstand the expected market downturn, and the need to maintain the quality and system stability for which the IBM brand is known."

While IBM will continue as Lenovo's agent for large account customers Gartner said mid-market PC-only customers that deal directly with IBM are the most likely to be affected - with the level of account control varying widely depending on the individual account executives and Lenovo specialists.

But Gartner's main advice is to take advantage of the situation by pushing for a better deal.

"Negotiate hard, because IBM and Lenovo are anxious for strong sales to justify the deal," the research note said.

Post a comment
Print

Post your comment

In order to post a comment you need to be registered and logged in.

Latest Hardware stories

Featured white papers

Vulnerability Management Buyer's Checklist

Qualys

Key Questions to Ask Before You Select a VM Solution Choosing a solution for Vulnerability Management (VM) is a critical step toward protecting your organisation's network and data. Without proven, automated technology for precise detection and remediation, no network can withstand the daily onslaught of new vulnerabilities that threaten security. To help finalise your decision on which solution to buy, Qualys provides this 12-point short list of considerations that will help you determine what will work best for your organisation.

Download now »
Creating a Dynamic Infrastructure through Virtualization

IBM

In almost every case,the transformation to a dynamic infrastructure will involve virtualization.Many IT professionals think of virtualization specifically in terms of servers.IBM,however,has a broader perspective,in which virtualization is seen as a generalapproach to decouple logical resources from physical elements,so that thoseresources can be allocated faster,more cost-effectively and more dynamically,wherever the business requires them in real time to ideally meet changingdemand levels or business requirements.

Download now »
How IP geolocation can improve your website experience and marketing activity

Quova

With geolocation technology, you can know a web user's real world whereabouts. This report examines the benefits from the fictional retailer's point of view. Things-4-You- a thriving online business, which had a poor record in converting online visitors into buying customers. Things-4-You demonstrates the potential of IP geolocation online. retailers.

Download now »