03 Dec 2004
IBM has reportedly put its PC business up for sale, with an expected price tag of between $1bn and $2bn.
The sale, which would include all of its desktop and notebook computers, would be in keeping with the firm's desire to only focus on high-margin, high-growth businesses like servers and its growing computer services business.
According to reports in the New York Times, IBM is holding discussions with Lenovo, China's largest PC maker, which was formerly known as Legend.
The PC business represents about 12 percent of IBM's annual revenue of $92 billion.
Analysts expect a pretax profit of less than $100 million for the unit.
IBM is currently third in the global PC market, with a share of 5.6 per cent, according to Gartner. The leader is Dell, with 16.8 per cent, while HP is number two with 15 per cent.
Gartner forecasted earlier this week that three of the top 10 personal computer makers would exit the market by 2007, citing slower growth rates and narrower profit margins.
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