U.S. favors relaxing decree restricting IBM; Justice Department stance on 1956 limitations is victory for company
Article Abstract:
The US Justice Department announced that it will recommend that IBM be released from certain aspects of a 1956 consent decree that severely restricts IBM's ability to compete in the computer industry. The original 1956 consent decree resulted in numerous restrictions on IBM's business practices. The Justice Department move would allow IBM's computer services unit to become an integrated part of the company. Currently, the Integrated Systems Solutions Corp must operate as a separate business unit from the other IBM units. It must pay full retail prices for products purchased from other IBM units, which severely restricts its ability to compete. The Justice Department will also recommend studies to determine whether the restrictions placed on IBM's AS 400 midrange and mainframe business operations should also be lifted. IBM had been unable to make any headway in its quest to end the 40-year-old restrictions because US District Court Judge David N. Edelstein, who originally tried the case, refused to overturn the consent decree.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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IBM shares fall nearly 3% due to delay in shipments; nervous investors spooked by problem affecting new mainframe models
Article Abstract:
IBM's stock price dropped 2.9%, or $2.875, to $94.625 after a company spokesman announced that the company could not meet demand for its new line of mainframe computers. The spokesman stated that IBM could not fulfill certain mainframe orders because unexpectedly strong demand for the new mainframe line outstripped the company's ability to procure power supplies from its vendor. IBM relies on a single vendor for its mainframe power supplies, which makes it difficult to increase manufacturing capacity when demand rises. The new mainframes are based on the CMOS processor technology that performs faster and operates cooler than older technologies. Analysts estimate that IBM's current quarter revenues will drop by $250 million and earnings will decline by about $0.20 per share or 8%. Analysts note that IBM's problem is not technically related, and the lost revenue will be made up in the next quarter.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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IBM targets Intel's chips monopoly with computer based on one of its own
Article Abstract:
IBM hopes the release of its first workstation equipped with the PowerPC microprocessor will break Intel's monopoly on the microcomputer processor market. The new IBM entry level workstations will be based on the 601 PowerPC processor the company jointly developed with Motorola and Apple. IBM will also be selling the PowerPC chips to other computer manufacturer at around $275 to $300 apiece. The success of the PowerPC will depend on how well it operates with applications made for other microprocessors. IBM and Apple are currently jointly developing an operating system that will run on the PowerPC. Industry observers believe the microprocessor market will soon become flooded because of new entries by HP, DEC and IBM, and a price war will ensue as a result.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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