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Sunday, August 06, 2006

Computer Business Lenovo Turns Profit After Acquisition of IBM

Computer business Lenovo recently reported it is finally making a profit again and successfully integrating the PC business purchased from major computer company IBM. Lenovo’s net profit for three months to June 30 was $5 million compared with the previous year’s same period, when it was $45.9 million. Despite sharp profit decreases, the amount was a great improvement over the $116 million loss the computer business experienced in the previous three months. Lenovo is now the third biggest computer business next to Dell and Hewlett-Packard.

In 2005, Lenovo officially bought IBM’s PC business and has been struggling to turn a profit ever since. The computer business states it will continue to stress cutting costs as competition increases.

Experts state that cutting expenditures will be a critical move for the computer business in light of the fact that rivals like Dell are cutting prices significantly in an attempt to attract more customers. Lenovo has been under attack for buying the IBM PC business, but the company is confident it will still be able to increase sales of laptops and notebooks. Many are stating that Lenovo is doing a good job of growing its business and that focusing on laptops is an important step for every company, since notebooks will eventually replace desktops as the most desirable products.

According to Lenovo, shipments of notebook computers went up 23% in the last quarter.

Blogged By: Computer Consulting 101 Professional Kit