IBM Unveils New Products

International Business Machines Corp. Tuesday introduced new hardware and software products to enhance its AS/400 system of mid-range computers and to draw new customers.

IBM has had healthy sales growth of its Applications System/400 line since it began shipments in August, 1988. But analysts said initial sales came largely from high-margin, top-end minicomputers, and IBM is now aiming at the lower end of the line, which accounts for most of its installations.

IBM said new customers are the largest market for its mid-range AS/400 computer line, although it is also taking aim at traditional customers.

“Our biggest market is new businesses,” said IBM business systems executive Steve Schwartz. “There are five to 15 million qualified, in revenue terms, businesses for multi-user systems (which do not yet have such computers).”

The key part of the new product offerings are two new computers, the B35, which lists at $27,280, and the B45, listed at $65,620. They are faster versions of the current 9406 model, which can be upgraded to the new system. They effectively replace the B30 and B40 models, IBM said.