Word: ibm
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...personal-computer industry. It's partly to blame for the recent sell-off of technology stocks that has driven major computer-manufacturer share prices down as much as 40%. (Want to know why we didn't make Dow 10,000 on our first run at it? Three letters: IBM.) There was a time in the mid-'90s when PC makers could count on ever more complicated applications requiring ever faster processors, causing consumers and businesses to upgrade PCs almost as often as Japan changed Prime Ministers. Sellers like Dell, Compaq, IBM, Gateway and Hewlett Packard got accustomed to 100% revenue...
...head into the millennium, it's a different market, one that has tech CEOs conceiving new strategies and tech analysts revising earnings expectations downward. In just a week, analysts lowered their share-price targets for Dell, Compaq and IBM. "Hardware margins are approaching [those of] grocery stores," says Roger Kay, research manager at IDC, a technology consulting firm...
...find companies like eMachines and Microworkz. The subgroup currently accounts for 20% of PCs sold at retail, according to the market-research firm PC Data. Ultracheap prices have earned eMachines, in business for just six months, fourth place in retail desktop market share, less than a point behind IBM...
...zero? A new service, Free-pc.com offers a free 300-MHz PC if you are willing to devote one-eighth of your desktop to a perpetual series of scrolling banner advertisements. It's hard enough to compete with low-priced rivals, let alone free ones. Maybe that's what prompted IBM CEO Louis Gerstner to write in a March letter to shareholders, "The PC era is over...
...least for IBM it is. What an astonishing statement from the head of the company that created the PC industry! But last week Big Blue announced that it lost a billion dollars on PCs in 1998. Gerstner believes the future is in networks and servers, both IBM strongholds...