To: Scumbria who wrote (20394 ) 11/25/2000 4:12:39 PM From: Paul Engel Respond to of 275872 Re: "IBM never used Cyrix processors. " In early November, IBM will launch an Aptiva PC for $599 that comes with a 300-MHz chip made by IBM but based on a design from National Semiconductor's Cyrix division, according to sources close to IBM. {==========================} IBM to unveil $599 PC By Jim Davis Staff Writer, CNET News.com October 23, 1998, 2:30 p.m. PT URL: news.com update IBM, which just last year lost ground in the consumer PC market because it was slow to launch a sub-$1,000 PC, is now poised to become the first major PC vendor to break the $600 mark.In early November, IBM will launch an Aptiva PC for $599 that comes with a 300-MHz chip made by IBM but based on a design from National Semiconductor's Cyrix division, according to sources close to IBM. In 1997, IBM lost market share in the consumer space because it was offering upscale systems while the market gravitated toward the low-cost computers, a trend that began in March. IBM did not respond with machines in that price race until November, and by that time it had built up excess inventory of unwanted systems that dampened earnings. With the new system, IBM could be poised to gain market share on Compaq and Hewlett-Packard, the current PC market leaders among consumers. IBM's use of its own chips comes at an ironic juncture because the company is currently phasing out these microprocessors. In September, National broke off a long-standing processor agreement with IBM: IBM will lose the right to make chips based around the Cyrix-National designs after the first of the year. IBM's semiconductor division has for years sought to land its chips inside of IBM's Aptiva machines, sources have said. Big Blue's PC division, however, has largely rejected them in favor of chips from Intel, AMD, and Cyrix. Some IBM consumer PCs have used the IBM-branded chip, but typically in computers sold to overseas markets. Nonetheless, IBM signed a technology licensing agreement with ST Microelectronics which could give IBM the opportunity to once again get back into the market for Intel clone chips. ST has its own Intel clone chip, which IBM can use under the agreement, said sources.