IBM Reported to be Selling PC Unit

By DE Editors

IBM (White Plains, NY; ibm.com) is selling its personal computingbusiness after helping usher in the industry more than 20 years ago.That’s what’s being reported today in The New York Times. The companyis currently ranked number three in sales of PCs worldwide with 5.6percent of the market by some estimates. Dell andHewlett-Packard are said to be first and second, with nearly 17 percent and 15percent respectively.

IBM is remaining mum on the subject despite the fact The New York Timesis saying “people close to the negotiations” have said Lenovo, China’slargest maker of PCs, and at least one other potential buyer are innegotiations for IBM’s desktops, laptops, and notebooks. The deal isestimated to be worth between $1 billion and $2 billion.

The PC business makes up a sizeable chunk, about 12 percent, of IBM’total annual revenue. Despite that, however, analysts are saying profitfrom that portion of the business will amount to less than $100 millionthis year.

If a sale does take place, it follows a recent IBM policy of sheddingbusiness units with limited profits and growth potential. Three yearsago, IBM sold its desktop PC manufacturing unit, and was contractingout manufacturing of notebooks while retaining PC design anddevelopment. Instead, IBM is concentrating on corporate servers as wellas its global services and consultancy units, which make up almost halfof its annual revenue.