Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (43904)	1/19/1999 2:42:00 PM
From: upanddown	Read Replies (2) \| Respond to of 132070

Earlie: What do you make of this ? Seems kind of desperate and probably doomed to failure. Hard to believe they can turn it around with overpriced PC's from IBM. I would expect a quick exit from PC business when it becomes obvious this is not the answer. John OfficeMax Inc., the No. 3 U.S. office supply chain, said Monday it will run a six-month test program to sell only International Business Machines Inc. personal computers as it looks to attract more business customers and halt losses in the cutthroat PC market. OfficeMax will open special departments to display the IBM merchandise and phase out sales of other computer products in six U.S. cities this spring. IBM will operate the departments under license in three of the cities, while OfficeMax will run the others with IBM-trained staff. OfficeMax didn't identify the cities. Supply companies, which sell everything from office furniture to pencils to fax machines, are finding it difficult to make a profit on PCs now that low-end machines are selling for less than $1,000. OfficeMax hopes the IBM name will attract small businesses and consumers looking for service and product support rather than the most competitive pricing. "We lose money today in the computer business," said Chairman and Chief Executive Michael Feuer. "We have too broad a selection of merchandise." Shaker Heights, Ohio-based OfficeMax may extend the IBM venture to include all 832 of its stores in 49 states and Puerto Rico in the next 12 to 18 months, as well as stores in other countries. It also may extend the program on its Web site. Stores in the program will also carry IBM laptop computers, monitors and servers. Both companies will decide whether the venture is successful after about six months. IBM, based in Armonk, N.Y., agreed not to enter into a similar program with any other large retailer of business supplies for the duration of the test program.