Newsletter
Weather
Community
English home Forum Photo Gallery Features Newsletter Archive   About US Help Site Map
China
World
Opinion
Business
Sci-Edu
Culture/Life
Sports
Photos
 Services
- Newsletter
- Online Community
- China Biz Info
- News Archive
- Feedback
- Voices of Readers
- Weather Forecast
 RSS Feeds
- China 
- Business 
- World 
- Sci-Edu 
- Culture/Life 
- Sports 
- Photos 
- Most Popular 
- FM Briefings 
 Search
 About China
- China at a glance
- Chinese history
- Constitution
- Laws & regulations
- CPC & state organs
- Chinese leadership
- Selected Works of Deng Xiaoping

Home >> Business
UPDATED: 15:10, March 07, 2005
Three risks in acquiring IBM PC sector: Lenovo Chairman
font size    

Deputy to the National People's Congress of China and the Chairman of the Lenovo Group Liu Chuanzhi said he is confident to turn the loss-making IBM PC sector to profits.

The US government has intervened in the deal by investigation due to concern for state security, which has indeed brought about some impact to the deal. But the final result will not be seen until two or three months later, said Liu.

The IBM PC sector has seen deficit for three consecutive years, with annual loss ranging from US$ 100 to 200 mln. The huge cost it bears for the parent company is the principal reason for such deficit. But Liu appeared confident for settling this problem. He thought the problem will be resolved once the acquisition is completed for it will not need to bear the huge cost for the parent company any more. In addition, cost for purchasing and human resources will go down too after the deal.

Liu acknowledged frankly there exist three risks for the prospect of profit making, a major concern for people outside Lenovo. The old customers of IBM will probably not buy Lenovo's products; employees may leave the companies due to change of shareholder; friction may occur between the two sides. "But two and a half of the risks have been overcome", said Liu. None of the IBM employee Lenovo wants to keep has left so far, because they look forward to have new room for growth. In addition, Lenovo has quite good performance in management, and the both sides are harmonious in operation.

By People's Daily Online


Comments on the story Comment on the story Recommend to friends Tell a friend Print friendly Version Print friendly format Save to disk Save this


   Recommendation
- China Forum
- PD Newsletter
- People's Comment
- Most Popular
 Related News
- Lenovo, IBM reveal strategies

- Lenovo claims 19 pct operational profit growth in quarterly report

- Lenovo: Acquisition of IBM's computer business progressing smoothly


Copyright by People's Daily Online, all rights reserved