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IBM, Hewlett-Packard Plan to Launch New PCs : Technology: Both companies are targeting corporate markets with high-end personal computers for businesses.

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From Reuters

International Business Machines Corp. and Hewlett-Packard Co. plan separate announcements today of powerful new personal computers targeted at the expanding corporate market.

IBM, the world’s largest computer manufacturer, will unveil in New York a line of its PS/2 computers which it plans to promote as its premium system for business users.

The announcement will follow IBM’s unveiling two weeks ago of 21 new low-cost PS/1 systems targeted to three different segments of the small-office and home computer market.

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With a new PS/2 line, IBM hopes to boost its sagging PC market share with a bevy of top-notch products, all with pre-loaded software and three-year warranty periods.

“IBM is covering all its options,” said Sam Albert, a Scarsdale, N.Y.-based consultant. “They are trying to ensure that any downsizing that occurs is to IBM machines.” The industry trend is to move from large systems to smaller but powerful computers.

The premium PS/2 line will include five desktop systems, three servers, three monitors and four multimedia PCs, with audio and video capabilities. All systems will be pre-loaded with the company’s OS/2 2.0 operating system and will be based on IBM’s Micro Channel architecture.

An IBM spokesman declined to give any product details.

The enhanced PS/2 line will be marketed by IBM’s Personal Computer Co., its newly formed business unit designed to enable IBM to compete more effectively in the cut-throat personal computer business.

Hewlett-Packard will launch an aggressive assault on bargain-basement clone manufacturers when it unveils its new line of personal computers.

It will introduce four high-end personal computers, driven by powerful 486 chips, starting at $1,149, company officials said. The computers will be available immediately.

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“This is the biggest introduction of personal computers in our history,” said Boris Elisman, marketing manager for the personal computer group.

At the same time, the Palo Alto, Calif.-based firm will kick off a multimillion-dollar advertising campaign in major trade and business publications as part of a strategy to ignite the company’s less than well known division.

“We are trying to get more aggressive in communicating our personal computer strategy,” said Elisman.

Hewlett-Packard, which generated $14.5 billion in revenue in 1991, is best known for its range of printers, work stations and measurement products. Analysts estimate that while printers account for 25% of revenue, personal computers make up only 5%.

Last month, Hewlett-Packard slashed PC prices by more than 25% in an attempt to stay competitive in a market weathering a grueling price-cutting war.

Computers in the new line, called the HP Vectra 486N PC series, are priced up to $400 less than comparable systems from Compaq Computer, according to company officials.

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