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(23-10-2012, 02:39 PM)freedom Wrote: Just like IBM's Thinkpad in the 1990s or early 2000s. IBM could survive at that time because they could sell Thinkpad at a premium price to a small population. IBM did enjoy a large market share. However, there was no way for IBM to continue to compete with HP/DELL/Lenovo/Acer when PC or laptop became a common thing almost 80% of the population can afford later.
The more accurate story is IBM had decided to exit PC markets in 2004 to concentrate on corporate solutions. So, they sold away everything that were related to PC electronics - PC, laptop, HDD, PC peripherals divisions.
Nowsaday, you cannot buy a brand new IBM electronics product from any electronics store.
In the last decade, they bought lotsa companies that provide solutions for project, software and system developments such that there aren't many competitors that can rival them in corporate solutions for project development.
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23-10-2012, 03:28 PM
(This post was last modified: 23-10-2012, 07:28 PM by corydorus.)
To be exact, IBM was bleeding badly in PC. They sold the PC division for nominal value of $1 to Lenovo IIRC.
Companies like IBM cannot compete on low price products. They thrive on higher value level of the foodchain to feed their relatively more expensive workforce.
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thanks for the correction should be in $1.x B .. 
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(23-10-2012, 03:28 PM)corydorus Wrote: To be exact, IBM was bleeding badly in PC. They sold the PC division for nominal value of $1 to Lenovo IIRC.
Companies like IBM cannot compete on low price products. They thrive on higher value level of the foodchain to feed their relatively more expensive workforce.
I fully agree with you on the reason IBM sold its PC division.
Apple on smartphone and tablet is in a similar position now. It is difficult for Apple to win on price competitiveness.
I believe that the day Intel is manufacturing large quantity of high quality mobile chips probably would be the day smartphone is a common thing.
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(23-10-2012, 03:28 PM)corydorus Wrote: To be exact, IBM was bleeding badly in PC. They sold the PC division for nominal value of $1 to Lenovo IIRC.
Companies like IBM cannot compete on low price products. They thrive on higher value level of the foodchain to feed their relatively more expensive workforce.
$1??
http://news.cnet.com/ibm-sells-pc-group-...82284.html
IBM will sell its PC division to China-based Lenovo Group and take a minority stake in the former rival in a deal valued at $1.75 billion, the companies announced Tuesday.
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Apple's BOM for iPhone is competitive, there is no reason Apple can not win on price competitiveness
16G iPhone 5 BOM estimation was slightly more than US$160, while selling price (w/o subsidies) when first launched was approx. US$600-650. There is no reason to believe that other smartphone manufacturers can outbid Apple for BOM cost.
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(23-10-2012, 04:03 PM)CityFarmer Wrote: Apple's BOM for iPhone is competitive, there is no reason Apple can not win on price competitiveness
16G iPhone 5 BOM estimation was slightly more than US$160, while selling price (w/o subsidies) when first launched was approx. US$600-650. There is no reason to believe that other smartphone manufacturers can outbid Apple for BOM cost.
for people in developed countries, it won't be a problem to pay US$600 - 650 for BOM US$160 for a quality product.
but the population is much larger in developing countries(China, India & Indonesia), where it is difficult for Apple to sell IPhone 5 at current price in a large quantity. Apple can sell, but not a lot.
It is not the time yet, as the smartphone chips are still expensive and relatively rare.
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(23-10-2012, 04:10 PM)freedom Wrote: (23-10-2012, 04:03 PM)CityFarmer Wrote: Apple's BOM for iPhone is competitive, there is no reason Apple can not win on price competitiveness
16G iPhone 5 BOM estimation was slightly more than US$160, while selling price (w/o subsidies) when first launched was approx. US$600-650. There is no reason to believe that other smartphone manufacturers can outbid Apple for BOM cost.
for people in developed countries, it won't be a problem to pay US$600 - 650 for BOM US$160 for a quality product.
but the population is much larger in developing countries(China, India & Indonesia), where it is difficult for Apple to sell IPhone 5 at current price in a large quantity. Apple can sell, but not a lot.
It is not the time yet, as the smartphone chips are still expensive and relatively rare.
I agreed with you current iPhone's pricing is not compelling for users in developing countries. It is Apple's marketing strategy, rather than in- ability to reduce price. There is no reason for Apple to compete in pricing, with its success in this market segment
According to the latest informed word on the streets, Apple will begin offering (w/o subsidies) cheaper iPhone in 2013, possibly for as low as $200 to emerging countries, which includes developing countries. This is different user segment of original iPhone of course.
With its current BOM cost, there is no reason to doubt Apple can offer that with similar quality as existing iPhone, but limitation in software features.
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BlackBerry no longer Pentagon’s phone of choice
The Pentagon will no longer retain an exclusive contract with Blackberry maker Research in Motion and has invited companies such as Apple to offer smartphones to its vast work force.
The move, announced on Thursday, comes only days after another government agency, the US Immigration and Customs Enforcement agency, said it was dropping the Blackberry device altogether in favour of Apple's iPhone.
http://www.iol.co.za/scitech/technology/...JTZBcUQfMQ
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New BlackBerry will power growth: RIM CEO
"A new line of BlackBerry 10 devices will provide Research In Motion with a framework for growth over the next decade, offering long-term value for unhappy shareholders, Chief Executive Thorsten Heins said
...
RIM is betting that the new smartphones will help it claw back the market share it has lost to the likes of Apple's iPhone and devices powered by Google's Android operating system."
http://www.todayonline.com/Technology/ED...h--RIM-CEO
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"BlackBerry maker wins vote of confidence ahead of BB10
Research In Motion, for months enveloped by a wave of negative sentiment, got a boost on yesterday when one of its most influential critics raised his rating on the stock ahead of the launch of RIM's make-or-break new line of BlackBerry 10 devices.
The upgrade by Jefferies & Co analyst Peter Misek pushed RIM's share price into double digits for the first time in five months, with the stock up more than 3 per cent at US$10.04 (S$12.32) in early trading on the Nasdaq" - TODAYonline
http://www.todayonline.com/Business/EDC1...ad-of-BB10
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