Tuesday, 29 November 2016

Samsung Disposing Of PC Manufacturing Makes Sense, For Samsung Anyway

The reduction in size of the PC market over the last three years has been startling, but given the way that hardware development has slowed and the longer usable lifecycles current PCs support it hasn't been a surprise.

Inevitably that will lead to a shake out of PC manufacturers.

With a recent attempt to merge the operations of several Japanese OEMs failing to get off the ground, it looks like the first evidence of this happening will come from Samsung, where a sale of its PC division to Lenovo is currently being discussed if rumours are to be believed.

Having seen nothing of the success of its smartphone division and with the PC market becoming even more cut throat, the opportunity to offload PC manufacturing would probably be very attractive to Samsung. Even with the very nice Galaxy TabPro S on the books, the PC division has struggled to garner sales.

I'm not entirely sure why Lenovo would want to buy up additional manufacturing capability just at the moment though. Unless Samsung's fabrication is significantly more efficient than its own (which I doubt) it would surely make more sense to expand its existing capacity.

Removing one contender for sales may be seen as enough of a value add to warrant Lenovo investigating this purchase, but unless there's a concern that Samsung may decide to ramp up its PC goals in the future this seems a strange buy on Lenovo's part.

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