Digital Plans to Market PCs Again

Digital Equipment Corp. stock fell despite expectations that the company would today announce that it has agreed to sell Tandy Corp.’s top-of-the-line personal computer, the model 5000, under its own label, according to computer industry sources.

Digital shares dropped $2.625 to close at $89.625 on the New York Stock Exchange.

The agreement would mark Digital’s re-entry into the desktop computer market. Four years ago, Digital abandoned its unsuccessful Rainbow personal computer after suffering losses and getting a weak reception in the marketplace. Since then, personal computers have been a glaring gap in Digital’s product line.

Tandy would not comment, but Digital said that it will announce a “major microcomputer agreement” today.