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March 27, 1989

SLOW-DOWN IN DEMAND FOR THE IBM AS/400 ?

By CBR Staff Writer

Indicators from the US used computer market seem to confirm our controversial contention that IBM may already be seeing a slow-down in demand for the AS/400 from the heady rate of orders in the six months of marketing last year: the argument is that the machine appeals disproportionately to System 38 users over 36 users, and that users of the former have already replaced or ordered their replacement machines, while many of the latter are dragging their heels and saying after you, and we now hear that low-end used Systems 38s are almost worthless, even the 600 and 700 are worth only 15% to 25% of list, while prices for used System 36s are going up, and that the big models are close to being unavailable.

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