History of personal computers first common in high end systems, servers and workstations, and then gradually replaced 32-bit processors in consumer desktop and laptop systems since about 2005. In 2004, IBM announced the proposed sale of its PC business to Chinese computer maker Lenovo Group, which is partially owned by the Chinese government, for US$650 million in cash and $600 million US in Lenovo stock. The deal was approved by the Committee on Foreign Investment in the United States in March 2005, and completed in May 2005. IBM will have a 19% stake in Lenovo, which will move its headquarters to New York State
Lenovo Yuanqing said: "I believe urbanisation will help us further increase the overall [domestic] PC market." Yang also stressed the opportunity presented by the China's relatively low penetration rate of personal computers. Lenovo previously benefited from the Chinese government's rural subsidies, part of a wider economic stimulus initiative, designed to increase purchases of appliances and electronics. That program, which Lenovo joined in 2004, ended in 2011. Lenovo enjoys consistent price premiums over its traditional competitors in rural markets and a stronger local sales and service presence. Lenovo has gained significant market share in India through bulk orders to large companies and