IBM has dismissed suggestions that it is giving up on the PC market
as "completely untrue", writes Caroline Davis. Big Blue has said it
will soon ship new pared-down PCs for business and home
users.
In 1998, IBM lost $1bn on PC sales and since then there has been
growing speculation that the company will close its PC
division.
Ken Batty, marketing manager for the Personal Systems Group in
IBM UK and Ireland said, "The rumours are completely untrue. IBM is
absolutely serious about the personal systems market. We are
determined to invest to become number one in the desktop
business."
IBM has developed a new "designer" range of products which will
be launched in the UK in June as part of its Edge of Network (EoN)
initiative. The products are designed to be "stylish and cool".
They include an all-in-one PC with a flat screen, which will sell
for under £1,500, and an Internet appliance which may be offered
free to customers as part of a package from retailers or ISPs. A
legacy-free PC (all communications are via USBs rather than serial
ports) will also be available from June at under £500.
IBM's EoN strategy will be to build products that it sees the
industry needing in the future. It is looking to high-speed
broadband networks using both Bluetooth and ADSL. The role of
desktop devices will change from general purpose to sitting at the
edge of the network receiving data, optimised for a particular
function.
"Computers will morph into a range of devices from smart cards
to managing cars from the desktop PC," said Dave McAughtry, VP of
marketing for the EoN initiative.
IBM expects to make a profit on its personal systems devices
this time. "The money will be made in end-to-end solutions which
include access to the network, data and portal management," said
Billy O'Riordan, client systems brand manager.