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Lenovo revenue dips; IBM customers wary

At $807.7 million, Chinese PC company's earnings slightly lower than last year's. After merger, will the IBM-loyal shop around?

Lenovo Group, the Chinese computer giant that will take over IBM's PC operations, saw revenue decline slightly to $807.7 million in its third quarter (6.3 billion Hong Kong dollars), which ended in January. Revenue for the same period a year ago came to $839.7 million. Net income stayed roughly flat at $41.8 million, the company said. Still, PC shipments grew by 19 percent.

Meanwhile, IBM customers will likely begin to shop around because of the proposed merger, according to a survey of 100 U.S. and European chief information officers conducted by Merrill Lynch. "Although most think IBM is smart to divest PCs, 45 percent of IBM PC customers will consider switching vendors. Some indicate it could reduce their demand for other IBM offerings," Global Technology Strategist Steven Milunovich wrote in a research note.