Comments on: Lenovo's next chief looks to the future

Stephen Ward, general manager of IBM's Personal Systems Group, will lead the way as the new Lenovo sets its sights outside China.

[croc_hunter]

price vs quality vs design

I am a chinese working in the US. I'd happy to have a chance to buy Lenovo here if they are available. Currently both my laptop and desktop are from Dell. I just don't know how Lenovo can compete with Dell in quality or design, but at least they can use the cheap labor in china to beat Dell in price.

Think again

Sir,

The Dell computers on your desk have very good chance of being mading in China and has the labour cost there factored in. I do not see good chance that you can buy a Lenovo in US, but people in other parts of world would have a better chance of having it.

[fhinner]

Oh my God.... Please someone help that guy!

I'm sorry this is about the most terrible interview I've ever heard. Does Steven Ward even know what he is talking about.

Doesn't look like it, there is not startegy what so ever he laid out. So he will continue on the IBM path that is not profitable, what?

Don't get me wrong I believe IBM Thinkpads have been and are the best you can buy for money. Both the professional line and the low cost lines.

But what the hell is the us, them and IBM. STEVE YOU DO NOT WORK FOR IBM ANYMORE, you know have to survive in the real world and run a company.

Sorry, but all this was hotwash not real information, no strategy, no plan.... sad very sad to see. In the world what was that comment we are IBM..... if you haven't figured it out yet you are not. You might have the brands, the products and technology, but will you be able to effort the up-keep?

After IBM is one of our main suppliers for notebooks we had to start looking for a secondary supplier that has the quality and support we expect. We finally found that in Fujitsu or Fujitsu/Siemens. To see such a respected company like IBM and its technology in the hands of someone like this as CEO really troubles me.

Very interesting how you can misjudge the situation in the way Steven Ward does. I was hoping for IBM that they find and use the Lenovo brand to move and compete with Dell and HP. But the statement was ohhhh no maybe not we are not in that market. So what market are you in? Just corporate?

Well I guess I'll be getting a Dell Dude.

Oh Really?????

Uhhhh a moment to think....
IBM is huge everything from semiconductors to servers to enterprise database software to PC's(he he). Unfortunately IBM US missed the PC boat because of terrible marketing and poor decision making: expecially brand leveraging: they missed the whole first to market boat. To rectify the status of the PC division would take management reorganization, cost cutting and investment. At their current status in the fairly saturated yet still growing domestic market it would take a significant investmentto persue growing their domestic manufacturing structure. It would also be necessary to leverage the brand through marketing to(not make the same mistake)not miss the boat one the faster growing world wide market(ie.billions a people in China).

Ahhh ha along come Lenovo. They actually manufacture stuff (cheaply) and have a huge market share in China. Someone at the top spoke to them and came up with this fake buy out deal/merger. Selling the PC division that's worth like $10 billion for 2 to use their infastructure to manufacture IBM PC's. Also the seperation from the rest of the IBM structure alows the PC division to leverage (ie. market) the brand independently of servers and stuff. IBM is reluctant to say that are gonna stamp IBM on the Chinese boxes but soon their will be a pruduct strategy development for future products involving new PC's. Anyway the Lenovo deal now gives more access to the international market and the ability for IBM PC's to be cost competitive. Also a separate management structure that alows for easier decision making for the PC division.

[merajahmad]

IBM or Lenovo or Thinkpad or THINKAGAIN

The reticence of the new Lenovo management on nomenclature the products is not misplaced given the fact that the hard earned technology brand positioning of IBM would be at stake if they paste the the same on the "chinese" product and the pressure on the other hand to promote the lenovo brand . the only way lenovo can make an impact is by reducing prices which will further dilute the positioning of the IBM products as low cost - low technology - low price.
things dont look too good for Lenovo .

At last IBM makes money on PC's ...

IBM never made any money on PC's, so it is good to hear they finally made some money by selling it to the Chinese. IBM will be retreating to be the biggest supplier of OEM components for the laptop industry. China of course already has that position for the traditional PC, specially if you include Taiwan as a Chinese satellite state.

[rdoumet]

Headline from 2009: IBM Buys Back PC Division

Five years after a deal where IBM sold its PC Division to Lenovo
based in China, IBM has decided to buy back its PC division. The
decision came after IBM's newly appointed management realized
that high-end computing, servers and consulting actually
required an end product where users in Corporations log on to
mainframes and take advantage of such services. IBM by
retreating from this market, gave way to rivals to fill the gap and
disaligned what, otherwise, was a vertical integration of end-to-
end software, financing, services and end user products.

In addition, back in 2004 IBM treated PCs as "commodities" not
realizing that its once dominant ThinkPad line was considered by
far the industry's best and the only recognized product line from
any computer company, which gave the Company an entry in
any new market such as China, where status driven purchases,
are the norm of every developing economy.

The same Corporate purchasers of IBM end-to-end solutions,
including ThinkPad lines, questioned the deal, since the
ThinkPad and ThinkCentre lines, gave a showcase of the
capabilities of IBM's software and hardware integration.

Additionally, IBM also did not realize at the time that even before
2004, it failed gravely in enterprise only strategies, with OS/2,
Lotus Notes and AS-400, where the server and hardware side of
the Company, helped revive and keep the brand alive over the
years.

Despite the buy back, IBM's China strategy failed to gain ground
since Chinesse consumers realized quickly they were not
actually buying IBM but rather a LenovoIBMized dilution.
Moreover, they were looking for the reliabity and cachet of the
ThinkPad, nevertheless, consumers flocked to Apple (which has
gained a good following among Chinesse students and young
executives who enticed by the 9th generation, 1 Terabyte Ipod
Mini) and enterprise customers who moved to Fujitsu/Siemens
who has offered the similar services from IBM, but backed such
offerings with a lineup of hardware.

Dell and HP continue to recap the generic Windows LongHaul
computers. Windows LX (LiNUX) is due hopefully by 2011,
according to sources.

[drudixon1]

Replies to Story - Off the mark.

I always find it interesting that the most vindictive or horrible comments come from those removed from the situtation. As someone close to the subject, IBM PC Division has surmounted many obstacles on its way towards building a value filled, profitable business. I'd like to ask you, when was the last time HP or Gateway didn't lose money on PC's? IBM PCD in 2004 is a major player and posting profits to be very proud of. It doesn't need to hide its numbers in a Printer Division or buy a Tier 3 Whitebox company to fix its problems. Regarding strategy, it does build a different type of solution, and its paid off for those businesses who realize that their $300 PC that breaks every two minutes from lousy hardware or software is costing them far more than their initial investment. I believe that idea is to work Smarter, not Harder. Steve Ward has a proven track record inside of IBM and it should be expected to be no different outside of IBM.