Samsung May Offload PC Division To Lenovo

Samsung Electronics could be about to offload its PC division to Lenovo, after it was reported that the two firms were engaged in talks.

It should be noted that Samsung has already sold its printer business to HP Inc for approximately $1.05 billion (£790 million), after the Korean giant decided to exit the consolidating printer market.

Samsung PC Unit

Samsung’s PC unit is perhaps best known for its tablet range, whilst its laptops tend to be pitched at the premium end of the PC market, despite many Windows-users being budget conscious.

Samsung has rarely revealed its financial figures for its PC unit, and now it has been reported by local news outlet the Bell (via the Investor website), that Samsung has been holding talks with Lenovo for months now as part of its strategy to divest itself of less profitable businesses.

Lenovo has reportedly hired Freshfields Bruckhaus Deringer to act as its representative, whilst Samsung has hired Paul Hastings as a legal advisor.

According to the Bell, the deal could be worth more than 1 trillion won ($850m or £683m), but it said that there has been little progress so far in the talks.

“Considering the close business relationship between PCs and printers, it seems quite obvious that Samsung, after its PC business sell-off, is withdrawing from the PC market,” a former Samsung executive was quoted as saying.

Samsung Troubles

It is no secret that Samsung is in a period of flux at the moment. Its offices in South Korea have recently been raided by police over a pension inquiry, and it is now under new leadership after management changes.

The firm has also been hurt financially after a number of Galaxy Note 7 devices, which had only been launched in August, caught fire.

As incidents of battery fires increased, Samsung issued a recall for the devices, and subsequently decided to permanently discontinue the Note 7.

Samsung’s reputation also took a hit last year when an independent Microsoft engineer alleged that Samsung’s PC software updater was deliberately blocking Windows Update from automatically installing patches and other upgrades potentially exposing users to hackers and malware.

Samsung denied the charge and said users had the option to allow Microsoft updates.

Do you know all about Samsung? Take our quiz!

Tom Jowitt

Tom Jowitt is a leading British tech freelancer and long standing contributor to Silicon UK. He is also a bit of a Lord of the Rings nut...

Recent Posts

NHS Staff Say New Tech Will Treat Extra 18.6 Million Patients A Year

Research from Virgin Media O2 Business finds majority of NHS staff believe new tech will…

5 hours ago

Alphabet Q2 Beats Expectations, But Shares Dip

Despite share buyback and positive Q2 results, Alphabet's share price falls over YouTube slowdown and…

6 hours ago

Google Cancels Plan To Axe Third Party Cookies For Chrome Browser

Better switch to Firefox? After years of delays, Google performs u-turn and will no longer…

7 hours ago

Meta Releases Open Source Llama 3.1 AI Model

Release of latest AI model, Llama 405B, offers improved reasoning capabilities especially for math and…

8 hours ago

Microsoft Blames 2009 EU Agreement For World’s Biggest IT Outage

Redmond says EU deal gave CrowdStrike the keys to the Windows kernel, allowing last week's…

12 hours ago