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On Wednesday 09 March 2005 05:30 pm, smitty wrote:
> http://www.reuters.com/audi/newsArticle.jhtml?type=technologyNews&storyID=7
>851572
If I read the link correctly, IBM got rid of the manufacturing / initial sales
portion of the business but kept the recurring revenue part. Given that the
profit margin on desktops is rumored to have pretty much tanked, it sounds to
me like a good move on their part.
Moreover, Lenovo is in a FAR better position to market to the Chinese citizens
than even IBM would have been and that is a largely untapped HUGE market
which, unlike the US and much of Europe, has not yet gotten anywhere near its
saturation point for PC's.
Particularly given that true IBM PC's are hardly market killers, the deal
makes sense to me.
Bill
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