PC makers' big push into the home market comes at risky time; although growth is strong, signs point to slowdown; profit margins are thin; betting big to be a survivor

Article Abstract:

Companies are scrambling to move into the home personal-computer market even as established companies struggle to maintain profitability. The homepersonal-computer market, the only part of the computer industry with sustained growth, continues to draw companies resulting in intense competition. Many companies will ultimately be forced out by competitors. Consumers stand to gain the most from the glut of new systems loaded with the latest technologies. Computer makers insist that market conditions are in their favor, but the perpetual growth of the market may be coming to a close as fewer consumers trade in old systems for the latest models. The richest consumer base for home PCs is almost saturated making PC makers marketing efforts more complicated and difficult. Doubts are already being expressed about market capacity and retailers are becoming more selective.

Microcomputer industry, Forecasts and trends, Market Trend/Market Analysis

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Checkmate! Deep Blue is IBM publicity coup

Article Abstract:

The chess match between IBM's computer Deep Blue and Russian chess master, Garry Kasparov is being promoted by IBM as a triumph of technology and is viewed by the marketing world as a public relations triumph. The company has spent approximately $5 million on the rematch between Deep Blue and Kasparov to cover such things as building and programming the computer, prizes and publicity. In return, the company has received well over $100 million worth of free, favorable publicity. The match has been on the cover of Newsweek, covered in an editorial in the Washington Post, discussed in a commentary on the National Public Radio along with coverage by numerous newscasts and newspapers around the world. The competition, which is being covered live by IBM's Internet site, had a million views during the game on Tuesday, May 6, 1997.

Electronic Computer Manufacturing, Digital Computers, Super, Supercomputers

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IBM delivers little on consumer-products pledge

Article Abstract:

IBM has been largely unsuccessful in its attempts to articulate and provide the products for a coherently designed marketing scheme for the home computer market. Since the formation of the company's Consumer Division in Aug 1995, IBM has divested itself of its primary links to the home market, including its 50% share in the Prodigy online service and plans to develop PDAs. IBM has also reduced retail support for its current line of Aptiva PCs. However, IBM is integrating voice-recognition, 3D game support and an assortment of multimedia features into its developing line of Aptivas, and the company has avoided the over-stocking problems that have damaged its competitors. IBM has also failed to formulate an aggressive position on the technology behind the $500 network computer.

Company analysis

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