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although some of you might be a little young to remember this it wasn't that

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long ago when ibm was a player in the consumer pc space it's for everybody but

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it lives in your room successors to the original ibm pc were common sites in

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both homes and offices and their thinkpad line of laptops were positively

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iconic and maintain a cult following to this day but in 2005 ibm sold off their

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entire pc division to lenovo and these

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days big blue no longer makes personal computers instead focusing on analytics

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cloud computing and selling mainframes to larger organizations so what happened

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that led them to this i mean just imagine if apple stopped making iphones

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mcdonald's stopped serving up big macs or taylor swift stopped dating people to

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provide fuel for her pop hits oh

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that was rude so it turns out the seeds of ibm's downfall in the personal

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computer space were sewn well before the early to mid 2000s although the original

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ibm pc released in 1980 was very successful due to its relative

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affordability and consumers familiarity with the ibm name it wouldn't take long

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for its own world-changing invention to start slipping from its grasp you see

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ibm originally developed just about all of the components in its pcs themselves

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this allowed ibm to initially keep a stranglehold on the pc market a far cry

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from what we're used to today where you might find parts from dozens of

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manufacturers inside both home built and store-bought computers but as it became

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resource and time-consuming for ibm to do everything themselves they started to

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include components from other companies notably operating systems such as

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microsoft's ms-dos and cpus from Intel

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now ibm opening up their platform in this manner made it easier for other

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companies to start building systems they labeled ibm pc compatible often at a

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lower cost than big blue could do it i like how we're calling ibm big blue big

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blue soon enough both pcs and their components were seen as commodity goods

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instead of something special that consumers felt compelled to buy

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specifically from ibm once this happened ibm's dominance began to evaporate ibm's

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original business model which relied on vertical integration i.e doing it all

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themselves helped them become a dominant force but was now actively working

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against them especially in the pc space as more successful companies were

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focusing on keeping their operations narrower for example specializing in

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only hard drives or processors instead of manufacturing complete systems of

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course other companies such as compaq were also selling complete systems but

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they enjoyed more success than ibm as they didn't have to deal with the amount

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of sheer bloat that ibm took on from

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being such a vertically integrated business and by 1990 many of ibm's

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divisions were operating on razor thin margins not just its pc operation making

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matters worse was that ibm wasn't exactly raking in the dough from other

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manufacturers licensing their technology for pc compatible systems instead

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competitors just ended up developing or adopting open standards that cut out ibm

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completely as the 1990s dragged on ibm

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felt even more pressure from companies like dell who marketed and sold directly

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to consumers cutting out the middleman ibm pcs on the other hand were more

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commonly found in retail stores like radioshack and like ibm's pc division

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they also went the way of the dodo by the time the mid-2000s arrived it was

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even harder to make money selling pre-built pcs as fallen component costs

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and the perception that the pc was no longer an unattainable luxury meant

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margins were slim for many manufacturers but especially for ibm although big blue

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ceo cited his opinion that they couldn't do much innovating in the pc space they

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were also losing money hand over foot leading them to sell off their pc

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operation to lenovo after 25 years in

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the industry but there's some good news for old ibm fans lenovo still sells the

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thinkpad complete with that little red mouse nub that'll take you on a

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nostalgia trip back to 1992 and confuse

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you a little along the way speaking of being confused you won't be

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the link below well that's it for this video guys thanks for watching like

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