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The Empire Strikes Back

The Chinese Empire that is. The desktop PC, after being all but abandoned by IBM and then its entire division sold to Chinese based Lenovo, appeared to be on its last legs, but it was not meant to be. With Lenovo in charge and equiped with its low cost manufacturing capabilities, the ThinkCentre line has been revived, and in an ironic twist of fate, making it's way back across the Pacific. Only time will tell if Lenovo's management, marketing, and manufacturing capability will help them succeed where IBM had failed.

While analysts don't see Lenovo's entry into the U.S. market as putting Dell's overall market share in serious jeopardy, it adds yet another complication for Dell, which has experienced a significant decline in its own growth rates recently. The Round Rock, Texas, computer maker is trying to boost sales in overseas markets like Asia. But the company may have to expend resources protecting its U.S. business, which is coming under increasing pressure from H-P, Taiwan's Acer, and now Lenovo.

The Street

Posted by | Thu, Feb 23, 2006 - 11:03 AM