On Dec.8th.2004, Lenovo, the largest PC manufacturer and distributor in China, and IBM, the third largest PC manufacturer in the world, had together announced a definitive agreement that Lenovo will acquire IBM's PC business. The transformed business will make Lenovo to be the third largest PC manufacturer in the world from now on.
IBM is no longer euthusiastic in the lower end of IT market of PC manufacturing business. It had committed itself to be the leading provider of the business solutions, including developing core technology in the next generation ITs. These high profit business will be the actual business focus area that where IBM will dedicated itself.
From business operation point of view, IBM is really smart, getting rif of its descending PC business, putting all the cash, operation and management focus onto its high profit business area. But for Lenovo, it is really a challenge to acquire IBM PC. Chinese industries are really eager to get into the global arena, and IBM offered this chance to release its brand image to the most potential Chinese PC manufacturer.
Hence, let's be calm to face various comments, especially those radical comments saying what Lenovo had aquired is just what IBM wanted to get rid of. For Chinese PC industry, this is really a rare chance for international development. For IBM, making use of Lenovo's distributional channel in China and hence will develop itself together with developing the most potential market for its newly oriented business in China.
This has remind me of the great merger between Daimler Benz and Chrysler several years before. The trend of collaboration in automotive industry had already sweeped into IT industry, and probably will continoues to other industries in the future. This signifies the merging trend of nearly all business on this planet in the foreseeable future.
Whether it is a success or failure, let's get our eyes ready for watching.