IBM Unveils Faster Version of PC XT
International Business Machines filled a hole in its line of personal computers on Tuesday, introducing a version of its best-selling PC XT with extra memory and a faster “brain.”
IBM said its new XT Model 286 can do most jobs three times as quickly as earlier models of the XT. Its brain, Intel Corp.’s fast 80286 microprocessor, is the same one used in IBM’s top-of-the-line AT personal computer.
The XT line is the world’s best-selling family of personal computers for business users.
Analysts said the new version of the XT, priced at $3,995, could help IBM hold onto its important corporate customers by giving them the ability to step up to a more powerful personal computer without going all the way to the AT, which lists for up to $5,295.
“My sense is it’s going to increase average revenue (per unit) for both IBM and its dealers,” said Doug Cayne, an analyst for the Gartner Group in Stamford, Conn.
The computer offers most of the AT’s power at a lower price and signals IBM’s intention to hang onto its share of the market for the more powerful personal computers, analysts said. IBM’s once-dominant share of the low-end PC market has been eroded by look-alikes known as “clones.”
The XT 286, although inexpensive by IBM standards, is priced higher than competitors’ machines with similar features, even figuring that most customers will be able to buy one for 25% to 30% below the suggested list price. Also, it contains few technological advances. “This sounds to me like they’ve just made a machine out of the parts bin,” said Larry Lefkowitz of Datapro Research Corp. in Delran, N.J.
Nevertheless, many customers, especially big corporations, are willing to pay extra for IBM products because of the company’s reputation for service and reliability.
The XT 286 can do most jobs 20% faster than the slower models of the AT and just 10% slower than the fastest ATs, said Cary Ziter, a spokesman at IBM’s PC headquarters in Montvale, N.J.
The XT 286 comes standard with 640 kilobytes of main memory, compared to 512K on the old XT models. IBM also announced that most other models of the XT would be upgraded to 640K of main memory.
The new computer also comes standard with a 1.2-megabyte floppy disk drive and a 20-megabyte hard disk drive, which can hold the equivalent of 10,000 pages of information. There is also room for another floppy drive.
Although the XT 286 overlaps the AT in many respects, power-hungry customers will still want the AT because of its higher speed and greater memory, predicted Stephen Bosley, an analyst for International Data Corp. in Framingham, Mass.
Also Tuesday, IBM announced software to permit tape backup for its PCs, new educational software and a new display screen for its more powerful computers that can show almost twice as many characters at a time as other models of its IBM 316X family.
