Keeping up with the Joneses' PC: now that everyone has a computer, it's time to sell you a better one

Article Abstract:

Those who need computers already have them, says Alex Randall, president of the Boston Computer Exchange. Therefore, marketers must find a way to displace the computers that customers have, which users apparently find adequate, with better ones. IBM recently responded by offering trade-ins: users now can get a discount on a new IBM microcomputer by turning in an older model. Advertising is changing: IBM's Charlie Chaplin figure, who signified computers that are friendly to novice users, is being replaced by ads that appeal to users who are more technically sophisticated. Companies such as Tandon and AST are offering computers that are specifically designed to make 'upgrading' easy. Software companies, now, do not target new users, but market to users of competing products. Or they redesign their products, hoping to tempt their own customers with a more powerful or a prettier package. Some industry observers do not believe that the first-time-user market is saturated. Others think that new, innovative applications are wanted.

Analysis, Microcomputers, Industry Analysis, Microcomputer, Outlook, Computer Industry, Marketing Strategy, Upgrading

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Doubts trail Sun Microsystems

Article Abstract:

Despite defying the recession and industry trends by registering a growth of 21 percent in the 4th qtr 1991, Sun Microsystems Inc is beleaguered by questions about its future. At issue is whether the computer company, whose 10-year existence has been nothing short of remarkable, will be able to hold on to its top perch in the workstation market in the face of increasingly potent competition from IBM, HP and DEC. All three companies have introduced workstations that cost less than $10,000, the market segment that is Sun's bailiwick. HP's low cost machine, in particular, has surpassed Sun's in the amount of processing power it offers at a given price. Intel Corp's 80486 microprocessor is also expected to cut into Sun's market. While Sun is expected to fight back with new machines by late 1992, there are rumors that the products will be delayed. Analysts still recommend Sun's stock, despite its value having plunged by $4, to $29,875, the day after it reported its revenue growth.

Prepackaged software, Finance, Sun Microsystems Inc., SUNW, Workstations (Computers), Workstations, Competition, Stock, Financial Stability

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