New Product Line Expected : IBM Cuts Prices of 3 PC Units
International Business Machines has announced reductions in the prices of three models in its personal computer line, and analysts say the announcement means the computer giant soon may be unveiling new PCs.
“The price cuts were expected,” said Jay P. Stevens, a computer analyst for Dean Witter Reynolds. “I think it is significant because it would confirm to people that new products are on their way. It’s cutting prices on the other models . . . to get rid of inventory.”
Stevens and other analysts predicted IBM would release several new PC models by the end of this month or in early February.
IBM said Thursday that it cut prices on its PC XT Model 286 to $3,395 from $3,995. That model features 640 kilobytes of user memory, a 1.2 megabyte 5-inch disk drive, a 20MB fixed disk drive, a serial-parallel adapter and an enhanced keyboard. The PC XT Model 089 was cut to $2,660 from $2,895, IBM said. The model has 640 kilobytes of user memory, a 360-kilobyte disk drive and an enhanced keyboard.
The IBM PC AT Model 068 with 256 kilobytes of user memory and a 1.2-megabyte disk drive was reduced to $3,395 from $3,995, the company said.
IBM said the prices are for direct orders from the company and were “the result of a normal business review.”
In a related development Thursday, Atari Corp. introduced an IBM PC-compatible personal computer selling for $499. The new PC is the first IBM PC-compatible product that supports IBM’s extended graphics adapter mode as a standard feature, said Atari President Sam Tramiel.
The $499 version includes the computer and disk drive. A system including the computer, disk drive and monochrome monitor will be priced at $699 when it is available at mass merchants and computer specialty stores this spring.
The company also introduced the Mega ST, a compact version of the popular Atari ST personal computer for the professional user, and a laser printer. The Mega ST will be sold in one-, two- and four-megabyte configurations.
Atari priced both the Mega ST, disk drive, monochrome monitor and laser printer for less than $3,000.
