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IBM Model 70-486 1⁄90
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1990-06-24
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Confidential / Apple Product Marketing
Contact: David Garr, Competitive Analysis, GARR1
IBM INTRODUCES NEW PS/2 COMPUTER TO USE 486 PROCESSOR
On Tuesday, IBM introduced its most powerful PS/2: The PS/2 Model 70 486.
Basically, it appears to be a PS/2 Model 70 386 with a 486 processor. It is
priced at $12,395 for a 2 MB RAM, 60 MB disk configuration. IBM claims that it
is available immediately.
This is IBM's second 486 announcement. In June IBM announced the 486/25 Power
Platform, which is a 25-MHz i486 daughter board that installs in the PS/2 Model
70-A21 (IBM’s 25-MHz 386 system) and replaces the existing 386 daughter board.
Both these solutions--the Model 70 486, and upgrading the Model 70 386 with the
486/25 Power Platform--are very similar. They both end up costing about
$12,400 for a 2 MB RAM, 60 MB disk configuration.
IBM's pricing for its 486/25 is similar to Compaq's. IBM's model with 2 MB RAM
and 120 MB disk is priced at $12,990. Compaq's 486/25 comes with 4 MB of RAM
and 120 MB disk and is priced at $13,999. Therefore, the Compaq system, with
an additional 2 MB of RAM, costs about $1,000 more. It is interesting to note
that IBM managed to ship a 486 system before Compaq.
This announcement by IBM had been expected. However, two aspects are slightly
surprising. First, IBM didn't make a big splash with this announcement. For
example, IBM makes no claim about the Model 70 486 being faster than the 486/25
Power Platform upgrade. (The trade press has criticized the 486/25 Power
Platform since it was simply an upgrade board for a 386-based system and
therefore wasn't optimized to take advantage of increased capabilities of the
486.)
Second, IBM's pricing does not make it attractive to purchase the Model 70 486
instead of the Power Platform. A customer has no price incentive to buy the
Model 70 486 instead of buying the Model 70 386 and upgrading to the 486 with
the Power Platform.
IBM claims that both the Model 70 486 and the 486/25 Power Platform are
shipping with the new, debugged, Intel 486 processor.
The short term implications to Apple are minimal. This machine, configured to
run OS/2 Presentation Manager, will list for about $15,000. Therefore, we
don't expect sales to be very high. It will be interesting to see how the
performance of 486 systems compares with 386 systems and the Macintosh. Once
we obtain a 486 system and run performance benchmarks on it, we will
communicate the results to you.
______________________
If you'd like more information, please contact David Garr, GARR1.
We also welcome your comments and suggestions.