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IBM is delaying its introduction of workstation

Article Abstract:

IBM delays the introduction of a new $10,000 workstation until 1992, making it difficult for the company to compete for particular contracts within the low-end workstation market. An International Data Corp analyst claims the low-end of the market is important to IBM. The delay will likely benefit such IBM competitors as HP and Sun Microsystems Inc, which markets workstations for as little as $5,000. HP has been marketing low-cost workstations that equal the performance of IBM machines since Mar 1991. Sun is in a particularly competitive position since HP has also delayed the introduction of a low-end machine until early 1992. IBM's RS/6000 line of workstations generated $1 billion of revenue during 1990 even though the machines were only available for six months. IBM's stock was down 50 cents on Thursday, Sep 19, 1991, closing at $104.875.

Market Analysis

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IBM set to unveil a workstation with more power

Article Abstract:

IBM plans to introduce a high-end workstation that will demonstrate that the largest computer maker is serious about the workstation market. The workstation is not expected to represent any major advances and will provide only around 25 percent more power than the biggest IBM machine. The new machine will operate at around 55 million-instructions per second (MIPS), which is up from IBM's previous high-end workstation that runs at 44 MIPS. The machine is expected to become available in the 1st qtr of 1991. Analysts say that the real test for IBM will be to offer low-end workstations since its workstations cost around $13,000 while competitors offer workstations under $5,000. The announcement, which comes amid a score of competitors' announcements, is scheduled for Oct 31, 1990.

Strategic Planning, Computer Industry, Product Development

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IBM to delay its introduction of workstation

Article Abstract:

IBM postpones its long-awaited entry into the rapidly growing workstation market, giving competitors an advantage for the rest of 1989. The market is expected to increase by 40 percent a year from 1989's projected $6.8 billion. IBM has not decided on a release date for the workstation. Sources say an Oct 17, 1989 release was planned and that the company had rented hotel rooms already for the announcement. Workstation competitors such as Sun Microsystems, DEC and HP are expected to benefit even if the IBM product is delayed only a few months. Analysts agree that IBM will price its workstation very aggressively to make up for lost time in the Unix-based workstation market where DEC's DECstation is the current price performance leader.

Market share

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