Re: [Thinkpad] China Computer Maker Acquires IBM PC Biz

From: Jonathan Graham <grahamj_at_virtue.cx>
Date: Wed Dec 08 2004 - 23:25:18 EST

> As in China resides over a third of the World's population, they don't
> have to care about that.

Onlyl if there's an internal market that isn't being satisified. Which
doesn't seem to bare out in the statistics. Since 2002 the Chinese PC
market has showed signs of slowing down.

What I think you're confusing is the difference between population and
market. A large population does not neccesarily imply a large market.

For example IT spending in China en toto is estimated to be about $30
Billion for 2004. As a contrast look at 2002 where the US government alone
spent $60 billion on IT services.

What Chinese companies are in a better position to do is sell to the world.
One thing that would help a Chinese company do that is a globally recognised
brand...and hey....that's just what Lenovo bought.

> Looks like Lenovo is going to provide "it's" hardware

You should can the sarcasm IBM hasn't made "it's" own desktops since 2002.

> with some kind of Linux clone. The internal market there is big enough,
and it is almost a
> brand new market, not hindered any kind of M$-Windows past. So they have
> just the open field to themselves.

Again you're assuming a market that isn't already being satisfied by other
vendors. There are at least two true Chinese linux distros - Red Flag and
Blue Point. So nothing added there. As stated, you can already buy PC's in
China. Again nothing added. Also as stated the Chinese PC market seems to
be slowing down. In fact this deal doesn't add much to the Chinese market
except the IBM name which doesn't appear to mean that much ( IBM machines
accounted for 7% of the PC's purchased in China in 2002 ).

Where IBM's name means the most is in the world market so it seems more
likely that Lenovo is trying to compete there rather than at home.

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Received on Thu Dec 9 04:29:53 2004

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