Why did IBM stop making computers? (Answered)

If you ask why did IBM stop making computers, I’ll assume you’re asking why the company ultimately failed in the market for personal computers. After all, IBM is still in operation. However, given that Microsoft dominated the PC market for 24 years, including the 1980s, it does seem odd that it has left. It also asks, “What does IBM do right now?”

I witnessed IBM’s decline in this market. In 1994 and 1995, I retail sold computers. Although IBM’s machines at the time were comparable to those of other companies, I had a tough time selling them. Many customers didn’t trust IBM and didn’t want to be forced into any contract. Even though there was nothing wrong with those machines, offering them a Compaq would have been much simpler.

I suppose connecting as much non-IBM equipment to IBM PCs as we could have been the best thing we could have done to increase sales of IBM PCs at the time.

Why did IBM stop making computers?

IBM kept selling PCs for a while because they made selling services easier. But that wasn’t enough of an advantage for long, so in 2005, IBM sold its PC line to Lenovo.

Remembering that IBM has never only been a PC firm helps understand the corporation. They have changed over time. A manufacturer of computer hardware, IBM was around in the 1980s. IBM has you covered whether you require a desktop computer for your workplace or a mainframe large enough for every employee of a Fortune 500 company to use. All of it and everything in between was present.

IBM had a difficult time transitioning from selling computers to selling services and software in the early 1990s. Software and services turned out to be more profitable. IBM continued to sell PCs for a while because they made it simpler to offer services. But eventually, that wasn’t a big enough edge, so in 2005, IBM sold its PC line to Lenovo.

However, that did not imply failure, at least not for the entire business. Several years after leaving the PC industry, IBM’s stock price reached an all-time high of $210 per share in 2013.

What about now?

IBM is still in operation and continues to produce computer hardware. It just uses different computer hardware. They produce mainframes, minicomputers, and AIX servers. IBM’s own proprietary Unix is called AIX. These all have substantially better profit margins, enabling them to sell software and services. Today’s IBM is considerably different from what it was in 1981. Although some don’t have high hopes for it, it has a history of successfully renewing itself.

Because of this, I hesitate to declare IBM a failure. Today’s IBM is not the same company as it was in 1981 or even 1995. However, it is still operating and selling goods that few people even know are still in existence. Many individuals are unaware that mainframes still exist.

Additionally, if you asked an IBM employee what the firm did now, they might not even say hardware. A lot of hosting and consulting work is now done by IBM. If you need someone to manage your data center or a portion of your IT department, IBM is one of the organizations you contact.

IBM fired a large number of employees in 2016 and again in 2017. However, I anticipate that IBM will continue eliminating underperforming business units and moving forward, even if it means becoming a smaller organization. I don’t anticipate the business entirely failing.

When Did Ibm Fail?

Due to its slow adoption of the personal computer revolution in the late 1980s and early 1990s, IBM struggled and suffered losses of more than $8 billion in 1993. Desktop computers had the power and were far simpler to operate for users and management than mainframes, which cost millions of dollars.

Why Did IBM Fail At Pc?

IBM was unable to compete with today’s cutting-edge hardware and software startups. According to Mr. Heller the cost of mainframe computers decreased by 90% over time, It lost money, lost market share, and developed into a financially troubled corporation while it was in denial.

When Did Ibm Stop Making Thinkpads?

In 2004, the business environment had shifted, and IBM was considering leaving the PC hardware industry. On May 1, 2005, Lenovo acquired the PC division of IBM, and over the following ten years, it rose to the top of the PC industry.

Conclusion:

In a nutshell why did ibm stop making computers IBM’s PC division was acquired by Lenovo ten years ago. By 2004, the company’s operations had changed, preparing to leave the PC hardware industry. On May 1, 2005, Lenovo acquired IBM’s business, and during the following ten years, it rose to become the top computer manufacturer in the world. Only one person can play the game on a PC at a time.

People Also Ask