IBM-Lenovo deal 'will benefit both companies' – analyst

Not much immediate change in New Zealand, however

Lenovo's purchase of IBM's PC division doesn't herald much change in New Zealand, especially in the short term, IDC NZ analyst Liam Gunson says.

"Locally, it's not going to have much impact and it's likely IBM will [keep] Lenovo as its preferred supplier of PCs."

Further down the track, Lenovo may use its presence in the consumer space worldwide to get into that market in New Zealand, where IBM isn't, Gunson says.

In a statement, IBM NZ managing director Katrina Troughton says the sale is "a strong move forward for our local clients and business partners, who will get the best of both worlds."

The statement also says "it is anticipated that all the people employed by IBM NZ's PC division will transition to Lenovo on completion of the deal," with approximately 10 staff going to Lenovo.

China-based Lenovo last week signed a US$1.25 billion (NZ$1.76 billlion) deal to by IBM's PC division and the move will make Lenovo the number three PC maker in the world, after Hewlett Packard and Dell.

IBM is taking an 18.9% stake in Lenovo and IDC's Gunson says the deal will benefit both comp;anies, with Lenovo "getting access to IBM's technology, brand and global channels and IBM getting Lenovo's low-cost manufacturing capability."

Lenovo has taken a five year lease on the IBM brand as it relates to PCs, which will enable it to build itself in markets where it currently doesn't have a presence, Gunson says.

Following the deal, IBM and Lenovo will enter into an alliance in which IBM becomes the preferred services and customer financing provider to Lenovo and Lenovo becomes IBM's preferred PC supplier.

IBM personal systems group general manager Stephen Ward will become chief executive of Lenovo and current Lenovo president and chief executive Yuanqing Yang will become Lenovo chairman.

Join the newsletter!

Error: Please check your email address.

More about DellHewlett PackardIBM AustraliaIDC AustraliaLenovo

Show Comments
[]