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; To prevent being passed by the PC parade, IBM has rolled out several new products as well as a new marketing strategy. In October the company launched a line of computers called PS/ValuePoint, with prices starting at $1,300 for the entry-level model. The PS/VP, which is compatible with IBM's original PC line, is the company's answer to Dell and Compaq, which both sell machines by mail order as well as through retail channels. The strategy is starting to pay off. IBM expects to ship 1.5 million PCs this quarter, 50% more units than it has ever shipped in any quarter in its history. The shipments include the company's five-year-old PS/2 models as well as its brand-new line of laptops. While its new assertiveness has been praised by analysts, IBM can at best hope only to stem its losses rather than to reclaim its lost glory in PCs.
The days of Pax IBM are over. Rather than dictate to the industry as it did in the past, a humbled IBM must now accept its role as just another player. To its credit, IBM appears to be doing exactly that. Although it is coming off what can best be described as an annus horribilis, rivals would be mistaken to underestimate this company in the future. If it can overcome the enormous challenge of becoming leaner and more responsive to shifting demands, and if it can anticipate the next technological wave rather than resist it, Big Blue still has the potential to be a market monster once again.