Letting chips fall; a PC price war has computer buyers on a shopping spree; cuts responsive to Compaq's among makers of clones excite retailers as well; software, printer sell apace

Article Abstract:

The latest round of price cuts in the microcomputer industry is spurring many users to buy now, but manufacturers are not likely to benefit. As the price wars intensify, microcomputer makers are seeing profits plummet, along with the price of their stocks. Industry analysts predict a gloomy future for some of the smaller companies. The winners in the microcomputer market are the retailers, the peripheral makers, software publishers and the component suppliers to the manufacturers, as well as consumers, especially corporate buyers. The latest round of price cuts was initiated by Compaq, which announced a new line of low-priced units and reduced prices on other machines by up to 32 percent. Dell Computer Corp responded with machines with prices up to one-third less than Compaq's. Software publisher Microsoft Corp may profit most of all, as each microcomputer sale usually generates three sales for the company.

Compaq Computer Corp., CPQ, Prices and rates, Price cutting, Competition

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PC makers defy the downturn hurting mainframe, minicomputer companies

Article Abstract:

Microcomputer and workstation manufacturers experience a profitable Mar 1991 quarter as more computer buyers reduce mainframe and minicomputer purchases. Analysts expect IBM to report a 50 percent decline in net income since revenue from its RS/6000 workstations did not compensate for depressed sales of its mainframes and minicomputers. Analysts predict Amdahl Corp's earnings to drop 70 percent for the quarter ended Mar 31, 1991 and NCR Corp's earnings to drop 24 percent; both companies announced mainframes and minicomputers in 1990 that will not be shipped until the end of 1991. Sun Microsystems Inc is expected to see an increase in sales from $632.2 million in 1990 to $825 million in 1991 due to successfully shifting its product line to corporate computer rooms and desktops. Microcomputer makers Apple, AST Research Inc and Dell Computer Corp are all expected to report increased net incomes.

Economic aspects, Finance, Forecasts and trends, International Business Machines Corp., IBM, Profit, Profits, Statistics, AAPL, Dell Inc., DELL, NCR Corp., NCR, Recessions, Amdahl Corp., AMH, Apple Inc., Trends, Recession, Market Analysis, Computer Industry, Financial Stability, AST Research Inc., ASTA

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