Speculation over IBM move
Big Blue's decision to sell PC business to Chinese manufacturer receives guarded response
The channel has reacted with cautious optimism following IBM's shock revelation that it is selling its entire PC business.
CRN revealed last week that Big Blue had put its PC business on the market. It was subsequently snapped up by Chinese manufacturer Lenovo for $1.75bn.
The deal, which is subject to Lenovo shareholder approval, will see IBM retain an 18.9 per cent equity stake in the company, which will form the world's third-largest PC manufacturer.
Gareth Hansford, director of the UK Personal Computing Division at IBM, claimed partners will not notice any difference trading with the new company.
"This deal will give us and our partners a broader opportunity to build against competition from Hewlett-Packard [HP] and Dell as we combine both product sets."
Hansford said until the transaction has completed - this is expected in the second quarter next year - "nothing will change for partners".
"Partner contracts will then be transferred to Lenovo and they will have the same Ts and Cs that they have with IBM's TopSeller programme," he added. The branding will remain untouched for 18 months, but after five years the Lenovo branding will be introduced alongside IBM.
"PCs will continue to be part of our PartnerWorld offering. Lenovo will simply be incorporated into that," Hansford said.
"This will also give us the advantage of tapping into the Chinese market, which is the fastest-growing market in the world."
Shaune Parsons, managing director of IBM Premier Partner Computer World Wales, said the news was a bit of a shock at first.
"PCs are becoming commoditised, and it's not going to be long before the bottom drops out of the market, so it is a shrewd move by IBM," he said. "The ones that will benefit most from this are the end-users."
Roger Mather, managing director of distributor Actebis, said: "I think it was pretty inevitable that this was going to happen. IBM struggled to get its cost base low enough and this will give it entry into the Chinese market with low cost of production.
"I think it will be good for IBM and the brand. It has lost out over the past couple of years and it will allow it to focus on core competencies."
Market watchers have speculated over the past week about the pressure that IBM's move will put on rivals Dell and HP.
"Suppliers and competitors will both feel the pressure from this," said Martin Gilliland, principal analyst for Gartner's hard-ware and systems research group.
"Competitors will have to accept the Chinese market will be harder to crack, while international markets will now include a player with a cost structure that can compete with Dell's."
Dell declined to comment, but HP claimed in a statement: "The announcement between IBM and Lenovo further shows that the PC market is a two-horse race."