Lenovo and Compal's extraordinary decision to create a joint venture to build PCs begs this question: When do you stop outsourcing?

When a Tier 1 brand buys into its contract manufacturer, it's because competitive pressure means it is no longer possible for contract manufacturers to bear all the cost burden of building new plants.

By working together, Lenovo and Compal hope to reach new lows in the cost of PCs... putting more pressure on other makers. That's why the new factory is located far Continue reading...

Bloomberg and the Wall Street Journal report HP CEO Léo Apotheker could be on the way out just after 11 months on the job, as HP faces decreasing investor confidence in the face of the current PC market slump.

Sources close to the matter mention ex-eBay CEO Meg Whitman as potential temporary replacement.

According to iSuppli HP remains the no. 1 global PC maker-- even if is currently under pressure from both the likes of the iPad and low-cost competition forcing prices (and profits) down.

However as we all know HP put its PC division out for sale as part of its "Garage Sale"-- a decision the HP board could be "reconsidering", according to Bloomberg.

Angering investors (and the board) further are the $10.3Bn acquisition of UK enterprise software maker Autonomy and the killing of the webOS business.

Intel and Google announce an alliance optimising Android for Intel chips, with Google's Andy Rubin joining Intel CEO Paul Otellini at the Intel Developer Forum 2011 keynote.

The joint effort will leverage Intel technology across both smartphones and tablets, improving Android performance on x86 architecture.

During the keynote Otellini shows a Medfield-powered smartphone running Android 2.3 (Gingerbread), while the show attendees can also find a Medfield-powered Honeycomb tablet prototype.

Other Continue reading...

Bloomberg reports Samsung will "never" buy webOS, CEO Choi Gee Sung tells the press at IFA 2011-- with Samsung spokesman Nam Ki Yung echoing the sentiment from Seoul.

The confirmation comes in response to analysts saying Samsung was planning to make a webOS deal with HP.

A number of analysts speculate Samsung is not the only company showing intersest in the Palm OS-- Facebook and HTC might be planning to open their wallets.

Choi continues saying “it’s not right that acquiring an operating syst Continue reading...

Qualcomm subsidiary Qualcomm Atheros buys Bigfoot Networking, in a quiet acquisition completed last month.

Bigfoot are known for high-performance networking devices for the gaming market, such as the Killer network card line.

Qualcomm Atheros says it will use Bigfoot technology to create "intelligent solutions for managing multiple, rich-media streams for a superior online experience across online games, streaming HD video and audio and real-time communications."

The company will continue supporting Continue reading...

After running CEO-free since Dirk Meyer's January 2011 resignation, AMD appoints ex-Lenovo COO Rory Read as CEO and president.

Read takes over from Thomas Seifert, who ran the company as interim CE.

At Lenovo Read was responsible for growth strategy in the Americas-- driving it to double-digit revenue growth and market share gains. Prior to Lenovo, Read has a 23 year history with IBM.

Seifert will return to his previous role as CFO.

Rumour has it AMD's CEO hunt took this long because the Board Continue reading...

HP bosses rush out in defense of the company's Garage Sale following alarm from shareholders, the Financial Times reports.

As one will recall, HP wants out of the PC business-- putting HP Personal Systems Group on sale and killing off the webOS device business.

Non-executive chairman Ray Lane describes the PC business as dragging on the company's profits, having to "compete with one arm behind their back."

Meanwhile CEO Léo Apotheker, confirming his lack of love for hardware, wants "strategic t Continue reading...

Apple makes more headway in China-- its greater China Q2 2011 sales (by shipment volume) overtake those of Lenovo, the world's 3rd biggest PC maker, according to the Financial Times.

Apple's Q2 2011 sales in greater China (including Hong Kong and Taiwan) reach $3.8Bn, while Lenovo's total $2.8Bn-- even if Lenovo's "greater China" sales don't include Hong Kong and Taiwan.

However analysts say Lenovo's Hong Kong and Tales don't make up the $1Bn gap.

Lenovo CE Yang Yuanqing's reponse to the above Continue reading...