Friday, December 03, 2004

IBM Bails on PC Division - Good for Apple?

So, you're wondering what the big deal is? Well, aside from all manufacturing moving to China (as opposed to most of it which is already there) the *big* news is that IBM is getting out of a division that has 11.5 billion in sales but still manages to loose several hundred million every year. They're smart, they're tired of fighting Dell and HP.

So, what does this mean? Well, IBM's CEO has been moving them away from commodity products (like PCs) as part of his strategy. Not a bad idea. But what does that leave them?

Well, the company is huge and they're moving towards being a true service company that is (as they say) "hardware agnostic." Which makes sense - especially since they make the primary chips for Apple's computer line as well as using the same Power technology for the chips used in their servers.

How I see this is good is that IBM will finally stop worrying about their PCs (which as Windows based PCs go are admittedly some good machines - though I still hate that damn little eraser like joy stick) and focus on creating great chip technology - thereby giving (hopefully) more attention to the Power PC chips that Apple uses for their computers. Wouldn't that be great?

Hey, maybe I'm just being optimistic (OK, yes I am) but after seeing the advances that Apple has been making since going to the IBM chips, and knowing that IBM has some really cool technology that is has patented over the past few years for making chips, I'm excited about the possibilities that can come from this marriage!

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