Another chapter in the disastrous history of IBM’s former (non-server) PC business
IT WAS once seen as a model for Chinese firms eager to take on the world, but is now considered more of a cautionary tale. When Lenovo bought IBM’s ailing personal-computer (PC) division for $1.75 billion in 2005, it transformed itself from the biggest maker of PCs in China into the third-biggest PC-maker in the world and one of the most ubiquitous Chinese brands. But earlier this month the firm reported its third quarterly loss in a row, of $16m. It had lost a total of $361m in the previous two quarters. It is also losing market share: Taiwan’s Acer has surpassed it to become the world’s third-biggest computer-maker. Success in China, it seems, is no guarantee of success abroad.