PC Industry Watch: IBM
IBM is among the oldest, largest and best-established technology companies. Today IBM has annual sales of more than $80 billion and worldwide employs more than 3000,000 people.
IBM was Apple’s first major competitor in the PC business but years later became the company’s partner in the famous Apple-IBM-Motorola alliance that brought the PowerPC processor to the Mac.
In the early 1990’s IBM underwent an exhaustive and painful restructuring that led to billions of dollars in losses but helped make the company more nimble and competitive in emerging markets. Currently IBM earns more than 50% of its revenues from sales outside the United States.
Please see the 5/29 Apple Stock Watch report for a quick overview of IBM’s recent layoffs and the performance of its stock.
IBM has purchased the PriceWayterhouse consulting business for $3.5 billion in cash and stock. This is the same unit HP offered to purchase for 2000 for around $18 billion.
The purchase puts Big Blue further ahead of HP and EDS in business and computer consulting service activity.
Check out the TMO coverage of IBM’s next generation PowerPC chips.
IBM is set to cut more than 15,000 jobs , it’s largest staff reduction in about a decade.
It’s also interesting to note IBM’s recent move with it’s Hard Drive division and the fact that they just opened a new Chip production facility in East Fishkill, New York.
The conflicting moves wouldn’t seem to be signs of an overall downturn of the company, but a continuing restructuring process.
"ignorance more frequently begets confidence than does knowledge" - Charles Darwin
What’s the difference between a Mac and a PC? Macs are designed, PCs are assembled.