Digital back in PC market with bold mail-order plans

Article Abstract:

DEC announced it will start selling microcomputers through mail-order channels and will cut the prices of its microcomputer line by up to 50 percent. The mail-order market is worth approximately $1.5 billion for microcomputers. Several companies such as Dell Computer Inc and Gateway 2000 have penetrated the market successfully. The company plans to spend $5 million on advertising and promises to deliver a customer-specific microcomputer with 30-day money-back guarantee and one-year on-site warranty. DEC also plans to sell Cray Research Inc's Y-MP EL supercomputer for between $300,000 and $1 million. Some analysts think DEC's prices are not yet competitive enough and that the company will never keep up with the market if they sell products manufactured by Tandy Corporation as DEC has planned.

Management, Product information, Mail-order industry, Mail order business, Business planning, Supercomputers, Supercomputer, Cray Research Inc., CYR, Digital Equipment Corp., DEC, Price cutting, Market Entry, Mail Order, Marketing Agreements

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In a departure, I.B.M. to sell its PS/2 PC's by telephone

Article Abstract:

IBM is planning to sell its IBM PS/2 35 and 40 microcomputers directly to customers through a toll-free 800 number service. The company has offered its PS/1 home models to consumers through telephone sales, but has not advertised this option widely. IBM traditionally offers its products through dealers. DEC recently implemented a mail-order operation to sell its microcomputers and Compaq Computer Corporation is also considering direct sales. The IBM products cost $1,500 or less and come with Intel 80386SX microprocessors and 40Mbyte hard drives.

Prepackaged software, Microcomputers, International Business Machines Corp., IBM, Telemarketing, Sales, Microcomputer, Toll free numbers, IBM PS/2 (Intel-compatible system), IBM PS/2 35 (Microcomputer), IBM PS/2 40 (Microcomputer), Toll-Free Telephone Numbers

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