Word: pc
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Aggressive American manufacturers, who currently have about 15% of the Japanese PC market, quickly countered NEC's move with more slugging. IBM, together with the Japanese office-equipment maker Canon, announced the development of a notebook PC with a built-in printer that they would sell for $2,380. Fast-growing Dell Computer opened a subsidiary in Tokyo and began its famed direct sales to customers. In Dell's line: a PC...
...Intel and Microsoft still have close relationships with Big Blue, there is little love lost between IBM and its potent progeny. IBM had an ugly falling-out with former partner Microsoft over the future of personal-computer software. Microsoft developed the now famous disk operating system for the IBM-PC -- called DOS -- and later created the operating software for the next generation of IBM personal computers, the Personal System/2. When PS/2 and its operating system, OS/2, failed to catch on, a feud erupted over how the two companies would upgrade the system. Although they publicly patched things up, the partnership...
...serve as computer brains, IBM has moved to reduce its dependence on Intel by turning to competing vendors. In Europe, IBM last year began selling a low- cost line of PCs called Ambra, which runs on chips made by Intel rival Advanced Micro Devices. IBM also demonstrated a sample PC using a chip made by another Intel enemy, Cyrix. And last October IBM said it would begin selling the company's own chips to outsiders in direct competition with Intel...
Intel is also accused of playing favorites. According to one competitor, the company allegedly allocates supplies of its latest, most sought-after chips first to its biggest customers, such as PC makers IBM and Compaq, and then to smaller clients. In doing so, critics charge, Intel can determine which PC maker survives or perishes. Competitors have also raised concerns about Intel's own entry into the PC market. They complain that the company favors customers that resell Intel-made machines with its newest and best chips. Says Walter J. ("Jerry") Sanders, chairman of Advanced Micro Devices: "It's clear...
...prevent being passed by the PC parade, IBM has rolled out several new products as well as a new marketing strategy. In October the company launched a line of computers called PS/ValuePoint, with prices starting at $1,300 for the entry-level model. The PS/VP, which is compatible with IBM's original PC line, is the company's answer to Dell and Compaq, which both sell machines by mail order as well as through retail channels. The strategy is starting to pay off. IBM expects to ship 1.5 million PCs this quarter, 50% more units than it has ever shipped...