HI Guys,
Considering that IBM started this thing we now know as the desktop "PC"
thing, I found this little article of interest.  Anybody want to plan a
good-bye party?--or would it be a good-riddance party?  The name may still
be around, but the manufacturer will be a different company.
Date: Sat, 12 Jan 2002 12:20:52 -0800
From: John Oram <[log in to unmask]>
To: Life Raft <[log in to unmask]>
Subject: +[SurvPC] Article: end of the era = IBM stops building computers

** Control, Alt, Delete For IBM PC Manufacturing

Cost-cutting IBM is abandoning the PC-making business. All
IBM-branded PCs made in the United States soon will be
assembled by Sanmina-SCI as part of a $5 billion, three-year
contract. Sanmina will buy an IBM factory in North Carolina,
which builds NetVistas, for an undisclosed sum.

IBM already outsources PC manufacturing for Europe, the Middle
East, and Africa sales to a Scottish contractor. Sanmina now
will manage that contract. IBM says all 900 employees at the
Research Triangle Park plant will be offered jobs with Sanmina
at the same salary. IBM will continue to design and market the
NetVista line and will still make its ThinkPad laptops at an
IBM plant in Mexico. Company execs declined to estimate
savings the deal may generate.

Last year, IBM exited the cutthroat retail-PC market in an
effort to shore up profits. For the third-quarter 2001, the
company reported that desktop revenue declined 30% compared
with the previous year. IBM's Personal and Printing Systems
Group, which sells PCs, posted a year-over-year decline in
pretax income of 180%. Meanwhile, competitor Compaq's PC
dependence is fueling opposition to its proposed buyout from
Hewlett-Packard.

Yet, IBM PC Products and Services general manager Fran
O'Sullivan says the company won't exit PCs altogether.
O'Sullivan says the ability to supply large corporate
customers with a full range of computing products remains
strategically important. "PCs represent an important part of
our overall E-business infrastructure," says O'Sullivan.
Technology Business Research analyst Bob Sutherland says the
strategy makes sense. "Many large customers prefer a single
source for all their computing needs." - Paul McDougall

For more on IBM, visit
IBM Defies Downturn With Solid Third Quarter
http://update.informationweek.com/cgi-bin4/flo?y=eFdB0BcUEV0V20TZZ0Am

IBM Loads Up New Desktops And Notebooks
http://update.informationweek.com/cgi-bin4/flo?y=eFdB0BcUEV0V20TMN0AN


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