Article: IBM starts price war with 27% cut

INTERNATIONAL Business Machines, the fourth-largest seller of personal computers in the first half of the year, renewed a price war yesterday by cutting its prices by 27 per cent.

The move, which affects its PS/2, ValuePoint, ThinkPad and PC Server lines, came a week after Compaq, IBM's rival and the new market leader, announced cuts averaging 22 per cent. Analysts believe Compaq will make further reductions and Bruce Chaflin, IBM general manager, said that the group would respond to more cuts.

Analysts said Apple Computer, the second-best selling manufacturer, and Packard Bell, which has also outsold IBM since January, are almost certain to join the fray to protect their market shares and ...

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