IBM, to reposition PS/2 as 'premium,' emphasizes service on updated models
Article Abstract:
IBM introduces the $2,735 PS/2 76 Intel 80486-based microcomputer and positions its PS/2 line as a high-powered microcomputer for business and government users. Other PS/2 models that range in price from $2,365 to $5,675 are also introduced. IBM believes that intensive microcomputer users will pay a premium price for a longer warranty and extra service. While courting high-end users, IBM attempts to remain competitive by reducing prices 30 percent to 40 percent on its older PS/2 models that are based on the 80386SX microprocessor. A PS/2 configured with an 80386SX microprocessor and an 80Mbyte hard disk drive now lists for $1,545. IBM is increasing its level of competition against AST Research Inc, Compaq and Dell Computer Corp, but its new microcomputers are not competitive with products from these firms. Industry analysts are doubtful that the IBM's strategy will be successful in increasing the company's market share.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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IBM prices new PCs to recapture market
Article Abstract:
IBM releases the PS/ValuePoint line of microcomputers, priced from $1,000 to $2,000. The company hopes to regain market share lost to lower-priced clone computers with the new products. The lowest-cost PS/ValuePoint machine, the $1,299 325T, is priced just above a comparable Dell Computer Corp machine, but IBM contends that its microprocessor is faster. Additionally, the IBM machines carry a superior warranty and better support services than Dell's products. The new autonomy of IBM's microcomputer division enabled the company to push through additional price cuts in the hours before the PS/ValuePoint line was released to counteract an unanticipated price cut by rival Compaq. IBM may regain as much as 10 percent of the microcomputer market with the ValuePoint products. IBM stock fell 12.5 cents to $68.375 on Oct 20, 1992, primarily because IBM sales have slumped across all products lines.
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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