[af_vet_rr]

US companies are chomping at the bit to get into China but are having hell tapping the market there.......In essence IBM is getting rid of its baggage and is picking up part of a company that is dynamic to China. The Chinese are also picking up insta-global presence.

This begs the question - how much longer are the Dells, HPs, Gateways, etc., going to keep making PCs (although it could be argued that some of those aren't really making their own PCs now), and how are they going to get into the Chinese (and Indian to an extent) markets.

IBM got lucky, to ditch the PC business and get into the Chinese market...it won't be so easy for Dell and the others.

[maui_hawaii]

Post 5 gives some more light on things...

As for Dell et al, going into China thats a good question.

I think they (Dell) will do what they are doing... same strategy, only in China... offer better customizable products. Don't be suprised to hear something like "Dell only has 5% of the Chinese market, but their company represents 50% of industry profits in China"

They are not stressing over China, and rightfully so.

Plus Lenovo (aka Legend) is a state corporation (one of the multitudinous 'partially govt owned' Chinese corporations). Basically that means the govt controls it and owns 49.9% of it, but they label it as "private".

In essence no one else will be allowed to have anything other than a niche market, especially if they are going to try and send the profits back to Wall Street...

I think Dell knows this. As does IBM, hence IBM has a rider in the Chinese market. Its kind of going with the flow of the powers that be.

If Dell (or anyone else) partners with a Chinese company then they might get some more of the Chinese market, but I don't expect it to happen to any sizeable extent. Dell doesn't want to open its secrets and vaults up to people they don't trust, not to mention for a mere shot at a so-so market.