Computer Price Cuts Mount: Hitting back at...

Computer Price Cuts Mount: Hitting back at its competitors, International Business Machines Corp. on Thursday announced price cuts of up to 22% on some desktop and other computers. IBM’s move, directed at both competitors and customers, follows Compaq Computer’s launch Wednesday of a redesigned line of corporate desktop computers and price cuts on some existing models. To make room for new models, Compaq cut prices on its old business desktops by as much as 23%. IBM, engaged in an advertising wars of words with other PC makers, said in a statement: “We’re serving notice to our competitors today. We challenge them to compete with IBM quality at competitive prices.”