Cut-Rate Computers, Get 'Em Here

IBM Slashes Prices to Compete with the Low-Cost Clone Vendors

It is the most profitable corporation in the world, but lately IBM has been giving more than receiving. Without fanfare or explanation, the computer giant revealed last week that it was cutting wholesale prices on several of its personal computers, including its top-of-the-line PC-AT, as much as 18%. At the same time, sources within Big Blue's network of 2,500 dealers said that the company will now allow them to return unsold inventory without penalty, and that it will shoulder a larger share of their advertising and promotional costs.

Despite the lack of official comment from IBM, the reason for its generosity...

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