IBM slashes PC prices in U.S., Europe, moving swiftly to counter rivals' cuts
Article Abstract:
IBM slashes its personal computer prices on Feb 11, 1993, in a quick response to European price cuts made Feb 8 by Compaq Computer Corp and US price cuts made Feb 9 by Dell Computer Corp. IBM's countermoves signal that the industry's ferocious price wars are not likely to end soon. The US price cuts of as much as 16 percent included such products as the high-volume PS/ValuePoint computers and a ThinkPad notebook computer. Dell had cut prices on all of its personal computers by 5 percent to 22 percent. In Europe, IBM cut prices as much as one-fifth on its PS/ValuePoint and PS/2 computers to compete with Compaq's cuts of 7 percent to 49 percent. European executives at Ing. C. Olivetti and Co and Dell may make cuts of their own. In a separate move, IBM has licensed rights to use the Pink Panther in its European personal computer advertisements.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Gloom descends over the European computer market; customers pare outlays due to economic uncertainty, currency turmoil
Article Abstract:
The European computer industry is experiencing a slump, and it is not clear when it will recover. As of late 1992, analysts expect that the growth rate of the European market, which has a total estimated value of $120 billion, will be only two percent, whereas they had predicted growth at four or five percent in early 1992. Companies' sales are lagging behind their sales plans because corporations are waiting to make purchases after the uncertain European economy settles down. The competition among companies has grown fiercer, and purchasers have grown more cautious. The European computer market began to slump in 1990, but then it only affected local European companies that were in competition with big firms in the US and Japan. Now US firms such as IBM and DEC are starting to feel the downturn too.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Comment about this article or add new information about this topic:
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