Computer Returns

The Chinese computer company, Lenovo, which bought IBM’s PC division in 2004, has announced it will be opening a small production facility in North Carolina next year.

The world’s No. 2 personal-computer maker says the PC production line now being built at a facility in Whitsett, N.C., will allow the company to become more responsive to U.S. corporate clients’ demand for flexible supplies and product customization. Although the cost of U.S. production will be higher compared with overseas production, an added benefit will be to raise Lenovo’s profile in the U.S., where it ranks fourth in market share by shipment.


Lenovo executives said the new production line isn’t a temporary publicity stunt. “I believe this is the first of many steps to increase our production capability,” Mr. Schmoock said. “I’m very, very bullish about what I can get out of this facility.”

Gerry Smith, Lenovo’s head of global supply chain, said the decision to set up a production site in the U.S. is in line with the company’s broader strategy of localizing its production in major markets as much as possible.

The move is interesting simply as a reflection of the way that more customized manufacturing–as Lenovo’s higher-end computers can be–is localizing.

But there’s also an irony here, given all the attention on Apple’s production in China, most recently with the Foxconn riots coinciding with the release of the iPhone 5.

But what it does is present an alternative strategy, with products Cook knows well, as a way to compete better against (among others) Cook’s current company.

If Cook can only get those Apple maps to work he might even return to the Southeast to see how this works!

Before Tim Cook became VP and ultimately CEO of Apple, he worked at IBM–what would become Lenovo’s US headquarters–in North Carolina on manufacturing logistics. And this move is effectively a return of ThinkPad production to IBM’s former stomping grounds.

Apple’s still not going to bring device assembly to the US anytime soon. They sell generic widgets, not customized machines as this plant will produce. And even as expensive as their products are within segments, most of what they sell is still much cheaper than a loaded laptop.

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Emptywheel Twitterverse
emptywheel TIL: 3 years after insisting if you don't call Benghazi terrorism instantaneously terrorists win it's okay not to call terrorism terrorism.
bmaz @mattfwood @jujueyeball You may read, but you clearly have a comprehension problem. Now go away or I will block your ass.
bmaz @mattfwood @jujueyeball Truly, go away with your repetitive false baloney. I am done with you.
bmaz @mattfwood @jujueyeball Because Dan's point was that too much is being called terrorism and that it will hasten a police state w/less rights
bmaz @mattfwood @jujueyeball Now begone, I am done with your nonsense
bmaz @mattfwood @jujueyeball Neither you nor JuJu can tell the difference between definitional provisions and actual available charge provisions
bmaz @mattfwood @jujueyeball But hey WTF, if you think you know more than the AG, preeminent experts and experienced criminal attys, stay deluded
bmaz @mattfwood @jujueyeball You think maybe there is a reason the analogous case of Dylan Roof wasn't charged as "terrorism"? Of course there is
bmaz @mattfwood @jujueyeball Here is piece by Head of Brennan Center Nat Sec Dept stating the same thing+explaining why
bmaz @mattfwood @jujueyeball You're just dense aren't you? Here is article quoting AG Lynch that terrorism does not apply
bmaz @mattfwood @jujueyeball Right back at you
October 2012
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