In what many see as the backlash of poor performing in the first quarter and quick strategy to greater growth, International Business Machines Corp. (IBM) looks to sell-off its low-end server business. Interestingly, the most likely buyer could be Lenovo Group Ltd, the same Chinese company to which IBM had sold, in a game-changing move, PC business back in 2004.
Lenovo Group Ltd, China’s PC maker, edged out Hewlett-Packard Co. in the global PC market. According to findings of research house Gartner, Lenovo Group dethroned Hewlett-Packard and became the world’s No. 1 PC maker in the third quarter of the year.
Lenovo Group Ltd announced its plans to open first production plant in the U.S. The facility will be located in Guilford County, North Carolina. The Lenovo plant in the U.S. is expected to start production of the company’s think notebooks, desktops and tablets next year.
Lenovo Group Ltd., the world’s second largest PC maker by sales, reported a 30 percent gain in quarterly net profit compared with its financial results from a previous year because of strong growth in personal-computer shipments in emerging markets. However it noted a slowest growth in one-and-a-half years due to sluggish demand in Europe and North America. In addition, the growth slowed downed as a result of the global economic weakness.
The rise in the market of Lenovo, the maker of ThinkPad, reflects the advancement of the technological firms in China globally in the recent years. This is mainly due the combination of overseas acquisitions, aggressive pricing and their ways of taking advantage of the ever growing domestic market. Some analysts have however warned of the fact that the rapid gain in the market shares of Lenovo have come at the cost of its profit margins. The company however faces a slowing rate of growth in the market for the PCs and the tough rivals in the space of the tablet PC.