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March 27, 1989

“NO WORRIES, EVERYTHING’S FINE”, IBM TELLS ANALYSTS

By CBR Staff Writer

News was slow out of IBM’s big Boston bash for analysts on Thursday, and by close of play here, the only speech out on the wires was that of senior vice-president Frank Metz, who insisted that IBM’s expectations for demand for the full year had not changed, and that the problem was solely related to the low yield on the 3090S chip. He said mainframe production will return to normal in the second quarter and that the missed production will be made up by the third quarter. But he said the problem has reduced the company’s flexibility if mainframe demand exceeds its expectations.

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