IBM official says company won't sell clones, as suggested by other executives

Article Abstract:

IBM Corp executive James Cannavino says IBM has no plans to sell a lower-priced clone of its PS/2 microcomputers, in spite of suggestions to the contrary by other IBM executives. Rumors have spread that IBM would acquire a clone manufacturing company, such as Northgate Computer Systems Inc, to produce low-cost microcomputers for sale in Europe, but Cannavino reports that IBM was simply investigating the low-cost computer industry for information. IBM's reorganization has created confusion among its companies, some of which fear losing corporate customers if IBM does not offer a lower-priced computer. Although IBM might produce a PS/1 at a lower cost, it is more likely that IBM will expand its customer base through mail order channels. There is no firm decision on any of these developments. IBM also reports that sales of its OS/2 2.0 operating system have been encouraging, citing 200,000 in sales through its toll-free number.

Prepackaged software, Product information, Reports, Sales, Strategic Planning, Low Cost, Sales Analysis, Cannavino, James A.

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IBM, in shift, to sell clone of PC in Europe

Article Abstract:

IBM is planning to sell clones of its own microcomputers in Europe and will establish a subsidiary company in Europe to focus on the low-end computer market. IBM will probably purchase the clones from an Asian company and then resell these products. The company will not attach its logo to the product to protect the IBM logo and name. IBM needs a gross margin of over 40 percent if it is to successfully make profit. Some of the overhead will be reallocated to other businesses that can absorb the expenses better. IBM already formed a joint venture with Hong Leong called International Application Solutions Pte Ltd, which began selling low-cost microcomputers as a part of an initial test run in Southeast Asia. If the European plans succeed, IBM may try to sell clones in the US.

Office machines, not elsewhere classified, Europe, Contracts, Sales management, International markets, Joint Venture, World Market, Hong Leong Corp.

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PC industry pessimistic about 1990

Article Abstract:

Microcomputer industry executives express pessimism about profit potential for the industry in 1990. Most feel that growth will continue at a healthy rate - from 10 to 20 percent - but profit margins will continue to decrease. The troubles most often cited include manufactures overcapacity and the absence of exiting new software packages. Some experts feel that buyers are waiting to see how the confusion regarding competing operating systems works out before they purchase a system. There is also some feeling that state-of-the-art technology is surpassing what buyers are able to use and that many capabilities are being wasted. Microcomputer makers say another problem stems from their inability to effectively market the more powerful high-end system.

Forecasts and trends, Technological forecasting, Profits, Financial Analysis Software, Outlook, Computer Industry, Profit, Preview of Coming Year

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