#IBM "Home" computer
IBM TO UNVEIL COMPUTER FOR THE HOME MARKET
(June 25)
IBM Corp. plans to unveil tomorrow its latest attempt to tap the home
computer market.
According to the Associated Press, IBM will introduce a four-model line
with the low-end machine selling for under $1,000 and possibly for as little
as $650 in discount houses.
Based on Intel Corp.'s 80286 microchip, the computers will be compatible
with scores of popular software packages used in business. Although the
memory will not be overwhelming, industry analysts claim it will be
adequate.
AP notes that some and perhaps all four of the models in the PS-1 line
will include a built- in modem as well as software from Microsoft Corp. that
will offer word processing, spreadsheet analysis and communications.
There will reportedly be no expansion slots, and the keyboards will not be
full- sized. Analysts say the design limitations are intentional so that
the new line will not threaten sales of IBM's higher- priced PCs.
IBM has a corporate policy of not commenting on unannounced products, but
industry analysts interviewed by AP said that top executives revealed
several months ago that the company is anxious to sell computers to the
millions of people who have little or no experience with the machines.
Although other computer companies have tried the same marketing ploy with
little success, IBM believes that the millions of high-tech novices that
make up this market have learned enough about computers that they will be
ready to take the plunge.
"The thrust of this seems to be going after the family," said Bruce
Stephen, an analyst with International Data Corp. "They sense that there is
some kind of perceived demand that increasingly families view a computer as
a necessary home appliance."
He predicted that IBM may market the machines as a way for families to do
shopping and investing and to use educational software. Stephen also noted
that consumer spending is down and that this may be the wrong time to launch
such a pricey item for the home.
For more news from The Associated Press, consult the Executive News
Service (GO ENS) or AP Online (GO APONLINE).
— Cathryn Conroy