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Taiwanese major could snap up HP's PC division Taiwanese major could snap up HP's PC division
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Taiwanese major could snap up HP's PC division
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Old 12th March 2005, 17:17   #1
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Default Taiwanese major could snap up HP's PC division

ASUS OR ACER could be the beneficiaries of HP spinning off its PC division - if that is, a new CEO wanted to spin off its PC division.
It all depends on who is appointed the new head of PC, but currently the runners and riders include the services guy at Big Blue and Ed Zander.

Of course, Ed Zander is currently at Motorola, and the services guy is currently at IBM, but just think of what might have happened if Carly Fiorina had bought Price Waterhouse rather than Compaq. Shareholders would have been over the moon.

The logic of Asus or Acer taking over HP's PC division is inexorable, given the recent go ahead with Lenovo and Big Blue itself.

The INQUIRER understands that mainland China's decision to snap up Big Blue was taken at the highest level of the politburo, with the premier giving it the go ahead. It's a matter of face. After all, what's needed for Chinese companies is brand, and Big Blue definitely gives brand to Lenovo. Acer is known to be a brand fan too, and as both Asus and Acer have huge manufacturing operations, the fit is almost perfect. Asus is also a sleek company these days.

Why, after all, is HP spending untold billions having Taiwanese companies build its PCs, when for a song it could sell the whole division off to a manufacturer hungry for brand and eager for fame?

The only PC company in the world that's currently making money is the lean and mean Dell, which is huge in the States but weak in Europe and in Asia. It's probably time for Lenovo to have a crack at the market.

http://www.theinquirer.net/?article=21776
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Old 12th March 2005, 17:17   #2
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If assemblying PC (they don't manufacture them) is not profitable and IBM saw that, the new HP CEO may do the same. So, in a matter of 2 to 3 years better than 50% of PC will be assembled in China where it has enough domestic consumption even if the Chinese is not exporting millions of them. Okay, what is Dell going to do?
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