IBM to Take On H-P Laser Printers

Hewlett-Packard is to laser printers what Mike Tyson is to heavyweight boxing--the unquestioned champion.

Hewlett-Packard’s line of LaserJet printers dominates the desktop page printer market with more than 2 million sold. But during the past two years, IBM has been preparing itself in Lexington, Ky., to emerge as a new contender.

IBM recently introduced the 4019 laser printer, which not only lists for $100 less than the H-P LaserJet Series II but boasts lower operating and maintenance costs. The printer was designed, developed and manufactured at IBM’s Kentucky facility. While many manufacturers build their printers around motors produced by other companies, IBM will maintain complete control of the 4019 by manufacturing it from start to finish.

Smaller rivals who announced plans for other laser printers in recent months have all made the safe choice and followed Hewlett-Packard’s operating standards. The key to these products’ success will be their ability to blend with H-P’s environment. IBM, however, looks to become the alternative to H-P and will base its success on the acceptance of its new product and the length of time before H-P responds with its next generation of LaserJet.

IBM and H-P both can depend on strong brand loyalty and brand recognition. Both enjoy reputations for quality, service and support. Few other vendors could stand toe to toe in the same ring.

Department of Defense Attempts to Entice Electronics Companies

To recapture the interest of the electronics industry, the Department of Defense has identified 22 technologies--including fiber optics, superconductivity and robotics--that it will assist in developing in the 1990s with an investment strategy to be worked out with Congress. The strategy would allow the military to fund initial development costs until commercial applications take over and the technologies attract money on their own.

This is one of several tactics the department will pursue in an attempt to regain the importance it enjoyed before the consumer electronics boom. In the 1960s, military equipment used about 75% of the semiconductors produced in the U.S.; today its consumption is 11%. As a result, most chip companies cater to the high-growth commercial markets and overlook defense contractors.

In NATO countries, where defense spending is expected to soften, governments plan to grant commercial firms small amounts of money to begin developing key technologies with an initial use in military systems only.

VDT Industry Seeking Global Approach to Safety Standards

U.S. makers of video display terminals still face a confusing mix of radiation standards for VDTs sold on the world market. Workers and union representatives around the world are concerned that prolonged exposure to electromagnetic radiation from computer screens can cause health hazards. However, there is no conclusive proof that VDT radiation has any adverse effects on computer users.

Although evidence shows that electromagnetic radiation can produce biological change in specific laboratory experiments, researchers have not consistently produced biological change in animals and have found it impossible to replicate the results of these experiments using human subjects.

Thus the questions remain: Does electromagnetic radiation affect biological processes, and if so, what are the results? Until these questions are answered, there is no way to accurately determine the minimum standards for VDT radiation, or even if a standard is needed. So far the U.S. Food and Drug Administration has assumed that VDT radiation is not a problem and therefore not subject to regulation.

But Swedish labor unions have concluded that the mere fact that electromagnetic radiation can induce biological change in any animal tissue is sufficient to require stringent radiation safeguards.

Several U.S. manufacturers have products that comply with the Swedish standards, despite little demand for the products in the U.S. The industry consensus is that there needs to be a worldwide approach to display terminal standards to end the confusion caused by multiple regulations.