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back to article Lenovo haggling with IBM over price of System X... AGAIN

High-flying PC maker Lenovo has confirmed it has re-taken a seat at the negotiating table with an unnamed server vendor, widely believed to be IBM. That Big Blue is committed to offloading its System X unit - the x86 division that was the subject of sale talks with Lenovo last year - would come as no surprise to anyone involved …

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I believe the X Server range would be a major coup for Lenovo, but will they pay too much for it?

Let's look back at when Lenovo acquired IBM's desktop and laptop business, sales declined greatly due to the U.S. government's "mistrust" of all things Mainland China and looking to Dell and HP for desktop and laptops

The legendary ThinkPad was once a major seller within branches of the U.S. government and once the marque was sold, it was no longer considered an option

Should Lenovo get its paws on the X Server range, would they experience the same declining sales within their newly acquired server range?

It's a calculated risk, pay too much and not get the sales figures, or pay an acceptable price and hope you can morph the Lenovo branded X Server range into something sellable, although the product would sell volumes in China, how would it fair in the rest of the [Western] market?

Interesting times are upon us and should Lenovo end up owning the X Server range, the "big three" (IBM/HP/Dell) could end up becoming the "Surviving two", as in Dell & HP

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Sales declined

Sales may have declined recently due to the general slump in PC demand but I hardly think the US Govts buying decisions hurt Lenovo much as their PC sales have been on a general upward trajectory since the Thinkpad buy.

But never let the facts get in the way of a good Leftpondian view of the world.

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Re: Sales declined

Lenovo has done pretty well in a declining market:

http://en.wikipedia.org/wiki/Market_share_of_personal_computer_vendors

I suspect if Lenovo took over the IBM x86 server business, assuming it got a fair price, it would be able to repeat the process and gain market share against HP/Dell.

As for one of IBM/Dell/HP disappearing from the market in the next few years - I'd be surprised to see all three survive as they are.

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Lenovo is not a One-trick Pony

Among other things, I believe that Lenovo is now one of the largest smartphone vendors in the world, though we in the West don't see much of their products in that area because their target market is mostly in China.

But in a nutshell - I don't think Lenovo is quite as "wholly reliant" on the PC market as the article suggests.

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