Reuters: IBM's Rometty meeting with Chinese officials to "restore trust"


Reuters reports IBM (IBM +0.3%) CEO Ginni Rometty is traveling to Beijing to meet with government officials in an effort to "restore trust with Chinese regulators and reverse slumping sales."

Like many U.S. enterprise IT peers, IBM's sales to the Middle Kingdom (and more broadly, to the Asia-Pac region) have nosedived; they dropped 23% Y/Y in Q4. All signs suggest the NSA spying uproar is a major culprit.

Also hurting IBM in China: Its sales within the country disproportionately depend on a hardware business that saw an eye-popping 26% Y/Y global revenue drop in Q4.

Big Blue recently partnered with data center owner 21Vianet (VNET +1.5%) to begin offering cloud infrastructure services within China.

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Comments (4)
  • misty__girl
    , contributor
    Comments (65) | Send Message
     
    Hey Ginni, while you're over there, tell them how you are firing all of your STG employees and have made it very clear that you want out of the HW business altogether. I'm sure that will impress them and whet their appetite to buy even more IBM hardware in the future.
    12 Feb 2014, 03:24 PM Reply Like
  • Brian Babylon
    , contributor
    Comments (94) | Send Message
     
    Perhaps IBM shareholders should band together to sue the NSA (US Federal Government) for economic damages. IBM would be up over 20% if it weren't for the idiots spying and pissing everyone off!
    12 Feb 2014, 09:23 PM Reply Like
  • IBM-Friend
    , contributor
    Comment (1) | Send Message
     
    IBM's Watson stuff may be good but it has not helped IBM understand its own customers, competition and markets. I chuckle when those who cannot solve their own problems go around giving advice and selling solutions to everyone else.
    13 Feb 2014, 03:10 PM Reply Like
  • dmindmindmin1
    , contributor
    Comments (12) | Send Message
     
    Ginny needs to cut out the many, many layers of useless executives who do diddly and insulate her and the board from the opinions and thoughts of its customers and employees to get to the bottom of the problem. Too many yes men and women in the executive ranks who can't see the emperor has no clothes.
    18 Feb 2014, 07:14 AM Reply Like
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