Advertisement

TECHNOLOGY : IBM, Apple Copy Each Other’s Main Strengths

Share
From Reuters

In a curious twist to the long-running battle for control of the personal computer market, industry rivals International Business Machines Corp. and Apple Computer Inc. are aping each other’s greatest strengths, industry analysts say.

In its most significant software move in years, IBM will introduce today a collection of software that will streamline the programs run on its machines, giving them a “look and feel” much like Apple’s highly successful Macintosh.

The new software, analysts said, will allow IBM’s machines to become more compatible by using a single system for controlling machines ranging from personal computers to mainframes.

Advertisement

The Macintosh has long benefited from such a software system, which allows computer users to learn other programs more easily once they have mastered one program.

Big Blue’s innovations are not lost on Apple.

New System

At a meeting of software developers last week, the Cupertino, Calif.-based computer maker said it was designing an operating system that will provide easier access to mainframe computers such as IBM’s for Apple users.

Apple also said the operating system would have the ability to do several computations at once, one of the strengths of IBM’s PS/2 line of personal computers.

Industry analysts said both computer makers are trying to make the most powerful machines on the market--mainframes--far more accessible to personal computer customers.

IBM can use its new linking capacity to sell packages that include larger, higher-end machines, while Apple will emphasize its new ability to work with other computer systems, analysts said.

The software introductions by IBM, the major producer of mainframes, would also test its ability to sell the PS/2 line of personal computers introduced two years ago.

Advertisement

Since then, IBM’s PC market share has slid, partly because of the lack of programs taking advantage of PS/2’s Micro Channel architecture, which enables the system to do several tasks at once.

Last year, IBM trailed Apple in the number of personal computers shipped--1.23 million to 1.27 million--for the first time since it entered the market in 1982, according to San Jose-based Dataquest Inc.

Expensive Memory

One reason for the slide: IBM’s OS/2 operating system, which controls the basic functions of the PS/2, requires a large amount of memory, which is expensive. Last week, IBM announced rebates of up to $800 on memory packages to entice new customers.

“They came out with the price cuts because people are not migrating,” said Paine Webber analyst Stephen Smith.

Smith said IBM still needs more software applications, such as spreadsheets, that take full advantage of the speed and power of the PS/2.

Other analysts said applications taking full advantage of the PS/2 would not be out until the fall, which is still months ahead of when Apple expects its System 7.0 upgrade.

Advertisement

The degree to which PS/2 sales pick up will certainly affect Compaq Computer Corp., the largest producer of IBM-compatible PCs, or clones.

Houston-based Compaq’s sales have soared as IBM struggled through the transition to the PS/2.

Compaq supplies about 7% of the computer units used by large companies, according to La Jolla-based Computer Intelligence.

Analysts say rising PS/2 sales would cut into Compaq’s market share, which already dropped one point last week after IBM introduced its price rebates and two upgraded machines.

As Apple and IBM continue to duel over leadership, other manufacturers have hedged their bets on whether the OS/2 system will become a standard.

Advertisement