Lenovo revenue dips; IBM customers wary

Lenovo Group, the Chinese computer giant that will take over IBM's PC operations, saw revenue decline slightly to $807.7 million in its third quarter (6.3 billion Hong Kong dollars), which ended in January. Revenue for the same period a year ago came to $839.7 million. Net income stayed roughly flat at $41.8 million, the company said. Still, PC shipments grew by 19 percent.

Meanwhile, IBM customers will likely begin to shop around because of the proposed merger, according to a survey of 100 U.S. and European chief information officers conducted by Merrill Lynch. "Although most think IBM is smart to divest PCs, 45 percent of IBM PC customers will consider switching vendors. Some indicate it could reduce their demand for other IBM offerings," Global Technology Strategist Steven Milunovich wrote in a research note.

[PCCRomeo]

IBM = Stupid

This has got to be the most stupid thing IBM has done. I do not think it would've effected IBM as much had they sold their PC market to an American company. I know I for one will not use IBM products in the future. Instead, I might as well just put my money in a toy boat to China...

IBM Service...

I am disappointed to see IBM move in this direction. I buy and recommend IBM products because they are solid, but more importantly because their service and support is excellent. IBM support is there for me at 3am Sunday morning when I have a hardware issue with an RS/6000 (granted not a PC product). Their PC product support has been great as well. I have purchased countless Thinkpads for myself, employers, and customers. I wouldn't consider buying another brand because the quality and support are so good. When I call IBM support, I deal with intelligent technical support representatives that don't waste my time forcing me to retest a system when a part needs to be replaced. When I tell them, for example, a hard drive is bad and I need a replacement, I am not questioned and the part arrives a day later. They are respectful to technically savvy customers. I've found that I am not the only one loyal to IBM for the above reasons. Many in the "old school" corporate IT world swear by IBM. In my experience, paying a little bit more for IBM products, something that has become less of an issue over time, is very much worth it in the long run. I personally hope government regulators disallow the sale and that IBM realizes which customers form the bulk of their repeat sales. I would not be opposed to paying as much as 10% higher prices if it was required for them to stay profitable selling PC products, especially Thinkpads.

[mosshaven]

CHINA? Who made THAT decision?

The older a greek you are, the more you love IBM.
So times change and prehaps IBM needs to sell off PC manufacturing...maybe. But NOT INTO CHINA! There are SO many national security considerations involved that the sale WILL NEVER HAPPEN. So what will IBM get from this brilliant idea? Major loss of business already occuring, giant black-eye with the general public and loss of stock value. A crying shame, really. But, personally, I will never again buy any IBM product. Ever.