Word: pcs
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...headquarters outside New York City, far from Lenovo's home base in Beijing. In September, Acer, Taiwan's best-known computer maker, tapped Italian Gianfranco Lanci to be its president. Lanci earned the post after spearheading a major turnaround of Acer's business in Western Europe, where Acer notebook PCs became the No. 1 best seller last year...
...concluded that a PC was a commodity, little more than a toaster that also does long division, and its decision to get out of the business spotlighted Fiorina's opposite bet. Under her command, HP in 2002 spent $19 billion buying Compaq, largely to expand its position in PCs and fight off Dell, the market's low-cost leader. Though the merger had produced cost savings--and wrenching layoffs--profits remained hard to come by. In 2003, despite Fiorina's promises that operating margins would reach 3%, the company's PC division earned a meager 0.1% on $21.2 billion...
Though the merger did produce significant cost savings, it did not improve HP's strategic position. In consumer PCs, HP is still getting punished by Dell, which just reported record numbers. On the computer- services side, HP is mostly stuck in the maintenance business, where margins are shrinking. Even HP's best performer--the $24.2 billion printer and imaging-products business, which yielded 73% of profits last year--is under pressure. Dell has entered the printer market and already has a 13% share of the U.S. inkjet-printer market...
...your computer, wirelessly sending songs to speakers far from your desktop? The Sonos Digital Music System is the sleekest solution available--complete with a cool iPod-like handheld controller that allows you to play different songs simultaneously in different zones all around your house. It works with Macs and PCs, can access music stored in many formats (iTunes, Windows Media Player, MusicMatch or WinAmp) and even streams Internet radio...
...carry the combined Lenovo and IBM label. And in five years "there will be no more IBM personal computers," says Lenovo CEO Yang Yuanqing. That's fine by IBM, which gets to make a graceful strategic exit from an unprofitable commodity business. And if Lenovo proves better at selling PCs than IBM, the Yanks still benefit: IBM will keep a 19% stake. --By Matthew Forney. With reporting by Michael Schuman