Reprogramming itself, IBM now wants to become a big supplier of little parts

Article Abstract:

IBM plans to increase its OEM (original-equipment manufacturer) activities. The OEM market, which involves billions of dollars, refers to the market in products bought by a company that lacks the resources or the skills or the will to build a product on its own. Such a company resells the purchased product under its own logo. IBM has announced two recent OEM deals: one is with Reply Corp, San Jose, CA, which will sell IBM peripherals as parts of Reply systems; and the other is with Mitsubishi Corporation of Japan, which will sell IBM mainframes. An IBM executive says IBM should be in the OEM business, if for no other reason, simply because the OEM business is becoming big. He estimates the size of the OEM business at $100 billion a year.

Office machines, not elsewhere classified, Planning, Computers, Digital computers, Contracts, Mitsubishi Corp., Strategic Planning, OEM, OEMs (Original equipment manufacturers), Reply Corp.

---

Truce is elusive in mainframe price war

Article Abstract:

An ongoing 'price war' involving IBM and its mainframe competitors shows no signs of easing. There is intense pressure on both manufacturers and leasing companies. IBM Chmn John Akers indicates that he intends to set prices so that IBM stops losing market share. Jim Unruh, CEO at Unisys - which reported a loss of $1.3 billion in 2nd qtr 1991 - foresees a 'difficult two-to-three-year period in the industry.' One reason for discounting mainframes has to do with prices for used equipment, which have dropped 40 percent to 60 percent since Dec 1990. Users find that they can get what they need by upgrading used equipment, so they don't buy new machines.

Prices and rates, Mainframe computers, Used computer hardware, Price cutting, Industry Analysis, Mainframe Computer, Marketing Strategy, Used Equipment

---

Similar abstracts:

• Abstracts: IBM to start announcing its fall line. IBM announces minicomputer line with more power. IBM to unveil some models of AS/400 line
• Abstracts: Busy stores and demanding customers: how do they affect the display of positive emotion? part 2 Expression of emotion as part of the work role
• Abstracts: Where is cost management going? Cost management beyond the boundaries of the firm
• Abstracts: NCR board, facing hard proxy fight, agrees to talks on AT&T merger offer. AT&T starts proxy fight against NCR after $6.12 billion proposal is spurned
• Abstracts: Japan admits foreign companies' share of chip market stagnated in 4th quarter

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.