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Technology Stocks : Intel Corporation (INTC)

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To: exhon2004 who wrote (5041)	11/11/1996 7:49:00 AM
From: exhon2004	of 186894

To All: The Wall Street Journal -- November 11, 1996 Technology & Telecommunications: IBM Steps Up Bid to Promote Network Devices --- Computer Giant Establishes A Division to Coordinate Efforts on New Machines ---- By Bart Ziegler Staff Reporter of The Wall Street Journal International Business Machines Corp. has formed a new division to make "network computers," ratcheting up its promotion of devices that are designed to be cheaper to buy and operate than personal computers, while taking advantage of the Internet. The new division was expected to be announced internally today, industry executives said. It is charged with coordinating network-computer efforts throughout the company and helping set industry standards for the machines. IBM Chairman and Chief Executive Louis V. Gerstner Jr. has targeted network computers as a prime growth market. But the heightened attention on network computers -- IBM rarely creates new free-standing divisions -- could intensify IBM's dilemma: how to popularize the new devices but not undercut its PC division, the world's second-largest. IBM already seems to be sending mixed messages about network computers. While its AS/400 minicomputer division recently started selling such a device, its PC division announced an alliance with microprocessor maker Intel Corp. to cut the operating costs of traditional PCs -- the chief advantage of network computers. The announcement underscores how IBM has to walk a fine line as it promotes network computers while remaining in the good graces of Intel, which supplies the key part of PCs and sets their technical standards. It also points out the potential for friction as IBM divisions pursue different strategies. Best Regards Greg Gimelli

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