Looks like there is going to be yet another consolidation in the PC segment. After selling off its printer division to HP, Korean giant Samsung is thinking of selling off its PC division as well.
According to South Korean site, TheBell, Samsung is in talks with Lenovo for the past few months regarding the sale of Samsung’s PC division. According to Korean analysts familiar with the matter, the sales value is being pegged in the region of 1 trillion Won or around $850 mn.
According to Sammobile, Samsung is represented by international law firm Paul Hastings while Lenovo is being represented by Freshfields Bruckhaus Deringer.
Samsung is in the process of corporate restructuring and wants to cut down on struggling ventures. The reason behind selling off the printer division to HP was to have more focus on core Samsung businesses. It is not a growing market so to speak. The same is the case with the PC division.
Take any report over the years, and it is just pointing to one thing – PC sales are on a year on year decline. A look at the top five PC vendors, and it becomes clear why Lenovo is being considered as the prospective buyer. It has been a leader in the segment, although its shipments have see a dip in terms of numbers, according Gartner report from April 2016. According to an IDC report, Lenovo was again the leader in Q2 2016 with a 21.2 percent market share.
Lenovo had acquired the IBM ThinkPad lineup in 2005. That brand is thriving with product updates every year, and more recently it has also branched off into interesting form factors such as the ThinkPad X1 Carbon, ThinkPad X1 Tablet among other products.
Earlier in October there was news about Lenovo being in talks with Fujitsu to acquire its personal computer business as well.
So it isn’t really a surprise that Samsung has approached Lenovo for selling of its own PC division as well. Neither Samsung, nor Lenovo have confirmed anything officially. So we will have to wait and watch, how this merger or acquisition pans out.
IBM, IBM Thinkpad, Lenovo, PC shipments, Samsung, Samsung PC division