Big Blue Disk 10/bbd10new.zip/EYEWITNS.TXT

Text File | 1987-05-21 | 8KB | 127 lines

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^C^1EYEWITNESS NEWS
^Cby Richard and Lavonna Rann


  The past quarter has seen the introduction of the new top-of-the-line
Macintoshes and IBM's revamping of their entire PC line. Industry leaders have
made their long-awaited moves.  It is now time to see how the industry will
respond.  It is obvious that the track is faster.

  NEW MAC MORE THAN EXPECTED:  The people at Apple expect the Mac SE to be the
major seller in the Macintosh line over the next year or two. The SE is
essentially an improved version of the Mac Plus in a new style platinum case.
Internal differences, however, give the user much more for the money.  Making
room for two built-in disk drives, one of which can be a 20-meg hard disk,
forced Apple to re-engineer the Mac motherboard.  Central to the revamping is
the new custom VLSI chip which replaced 19 chips found on the Plus. This chip
improves the processing efficiency by doubling the speed of the Mac Plus video
screen refresh rate.

  In October 1986, Microsoft unveiled software that allows Mac and MS DOS file
sharing.  Since then, the run-up of microcomputer stock prices has given
Microsoft president Bill Gates an estimated $900 million plus net worth. ...We
hear that one well-known all MS-DOS house is porting their line over not only
to the Mac, but the GS as well.


  NEW IBM MICRO LINE ANNOUNCED:  On April 2nd, IBM unveiled its long awaited and
much rumored line of new computers. No longer is IBM selling just "personal
computers," but "systems," more specifically, Personal System 2 Models 30, 50,
60, and 80. They replace the PC, PC XT, and PC AT respectively, with the Model
80, the much talked about new high-end 80386 machine.  IBM also announced price
cuts on their entire current line of personal computers, making the six-year-
old and un-upgraded base model PC XT available at $1395.

  All the new models have some common features. First, they all have more RAM
from the 640K 8086-based Model 30 to the 2 meg -- expandable to 16 meg --
80386-based Model 80. Second, IBM has gone completely to 3.5-inch disk drives
in two standard capacities, 720K and 1.44 meg.  Third, they have adopted 640 by
480 graphics as standard, with color graphics now driven off the motherboard.
A 720 by 400 text mode has also been incorporated.  Fourth, the machines will
use an upgraded Microsoft DOS 3.3.  A new Microsoft operating system OS/2
will be available for the Models 50 and 60. The new OS/2 will be graphically
oriented with windows and pull-down menus.  While the Model 80 will be
available later this year, the new operating system will not be ready until
early 1988.  All Models except the 50 are offered in multiple configurations,
but the top end 80-111, priced at $10,995, will not be ready until near the
first of the year.

  Along with the four new computer models, IBM introduced four new monitors,
five printers including their first desktop laser printer, dozens of add-ons,
software and software support products -- a larger number than are in the whole
catalog of many companies.  As a whole, the products are attractive and
powerful.  The Model 30 claims to be twice as fast as the XT it replaced, and
the Model 80 seven or eight times faster than the AT. Along with increases in
processor speed, IBM has made motherboard improvements to enhance efficiency.
These changes will make the new IBMs harder to copy.

  Most analysts agree that the new IBMs are not clone killers. With delivery of
the new operating system delayed considerably, and significant software
development expected another six to 12 months after that, there appears to be a
window of time for clone makers to design new systems that match the IBM
offerings.  If there is any group that is in real difficulty it is the generic
PC compatibles coming out of Asia. It will be more difficult for them to design
systems to fit into the new market than it will be for Compaq, Tandy, AT&T, or
Commodore, who already have good design staffs.

  CONCLUSIONS:  April 1987 has introduced change into the entire microcomputer
industry. IBM has retired the "Little Tramp" along with the standards it set
for the industry. In its place they propose a new standard based on Microsoft's
operating systems. These are written under an agreement that Microsoft signed
with APPLE a few months back, allowing them to duplicate the "look and feel" of
the Apple interface. What IBM aims to do is become very Macintosh-like in its
use of graphics, 3.5-inch disks, and the mouse interface.  Apple has a year or
two head start on IBM because the Mac II operating system is already in place,
backed up by scads of updateable products already bearing the Mac feel and
look.

  There is no doubt that in many Fortune 1000 planning meetings, IBM is well on
its way to selling its System/2 machines. They will go on dominating the large
corporate buyer, but, unlike five years ago, this is no longer a rapidly
expanding market nor will IBM be free from competition.  The real battle is for
the smaller corporations and businesses who are mostly MS DOS houses.  The
question is what they will do? Will the compatible makers keep MS DOS strong?
Will Apple keep expanding its share of these businesses?  IBM has redealt the
cards, and we will see who got the hot hand.

  TARIFFS:   President Reagan imposed stiff tariffs on many Japanese electronic
products because the Japanese did not stop selling DRAM chips below
cost. It is believed that importation of these as chips, alone or in finished
products, is one of the major factors in the U.S. chip maker's loss of $183.3
million last year.  Chip dumping is only one side of the problem.  Japan's chip
makers must keep their huge capacity plants running at a profitable level.  To
do so, they must overproduce.  For U.S. chip makers the problem is access to
the Japanese market.  Japan could be a good market for U.S. custom chips if
import restrictions are eased.

  The new tariffs should have minimal impact on the overall trade picture.
They cover products valued to a mere $300 million. Clayton Yeutter, U.S. Trade
Representative, said that Reagan's move "probably constitutes the first step in
a major reassesment of our longer-term economic relationship with the
Japanese." There is a lot of pressure to come a compromise before both
countries are forced into a trade war. The end product of any compromise will
be a rise in the price of DRAM chips above the $2 current price, and a
subsequent rise in computer prices.

  SOFTWARE BILL INTRODUCED:  Senator Richard Kraus introduced a bill into the
Massachusetts legislature to force software makers to support their advertised
claims. Dissatisfied buyers would get a new copy of the program or money back.
Another provision makes software makers liable for damages.  Most companies are
wary of this and only offer limited warranties.  Some don't even claim that the
results of their programs are correct.

  FOUR-MEGABYTE CHIP DUE:   Along with IBM, several Japanese companies have
announced the development of 4-meg RAM chips which may reach computers by late
1989.  Besides larger capacity, the new chips also speed memory access.

  TALKING COMPUTERS NEXT:   "We're going to have conversations with our
computers," says Matthew Kabrisky, researcher at the Air Force Institute of
Technology. While there are sill many technological difficulties, he sees more
verbal communication with computers in the next generation rather than through
the keyboard.  Kabrisky says it means opening whole new areas to
computerization, and another period of explosive microcomputer growth.