IBM Corp says its Personal Computer Co shipped 30% to 35% more personal computers in the first quarter than it did during the year-ago period, and vice-chairman Jack Kuehler expects it to be reasonably profitable in 1993 – but the personal computer business is now so volatile that making forecasts more than a quarter ahead is a mug’s game: following Conner Peripherals Inc’s warning on Friday that it is seeing oversupply and soft demand for disk drives (CI No 2,142), observers are saying that grey market prices for 80486s are now weak; Finis Conner said on Friday that Conner would have to slash production and payrolls in the months ahead to remain competitive – The market is in total disarray, he said; the pricing that has occurred in the last four to five days has been something I’ve never seen believes the booming personal computer industry is showing signs of slowing after being fuelled for over two years by the price war.
