IBM PC buyer Lenovo has piddling profits

With profits of $42 million in its latest, China's Lenovo will take three or four decades to pay off the $1.25 billion the company will pay for IBM's PC business, a pending deal. Revenues declined to 6.31 billion Hong Kong dollars ($809 million) from 6.55 billion Hong Kong dollars a year ago. Given the rapid growth of China's PC market -- the fastest growing in the world -- this is not a good report for a company which needs to make a global name for quality and stability, property's most cited by IBM customers.

Peter S. Kastner