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Missing out on PC revenues

By selling off its PC business IBM is missing out on significant revenue, which will put it at a disadvantage to Hewlett-Packard (HPQ) which has the potential to grow substantially as it solidifies its number one position in the PC market without the IBM name present.

That's a ridiculous statement - the shareholders were rewarded with increased profitability what IBM needs to do is sell off the low end X series business to Lenovo and concentrate on high end servers.

Agreed (with the comment above, NOT the initial analysis). IBM already has enough criticism for being big and bloated. In any case, the deal is done.IBM has a stronghold on the mainframe market (a New York Times article^[1] says it is trying to "keep its tight control". Note the word keep. It is strongly situated for the mainframe market and it is trying to streamline. At this moment, with the competition raised up in the consumer electronics market with low margins (and some analysts claiming that "net-books" are cannibalizing the high-end market), it does not seem a bad position for IBM to have sold the PC group. I quote Techrepublic^[2] here "[...] the deal [between IBM and Lenovo] will let IBM continue its shift from selling so-called commodity products to selling services, software and high-end computers. [...] IBM makes little profit from PCs and often loses money." It appears that selling PC Group was a part of a larger restructuring that IBM seems to need to become a bit nimble (please don't laugh at me having 'IBM' and 'nimble' in the same sentence).

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