IBM forms personal computer division

NEW YORK - IBM yesterday announced the formation of a new personal computer division as part of its efforts to streamline operations and make itself more responsive to market changes, writes Michael Marray.

The new division, IBM Personal Computer Company, will develop, manufacture, distribute and markets its line of PC products worldwide.

The move will involve various IBM divisions being reassigned to the new group, although it will still be run along the same lines as IBM's existing geographic divisions worldwide. It will operate as an independent business within IBM, with its own targets to meet in areas such as profitability, return on assets and revenue growth.

IBM also announced changes to its operating systems software businesses that will see a single unit, Personal Systems Programming, becoming responsible for worldwide operations, including brand marketing.

A steady steam of product initiatives are expected from IBM in the coming months.

These include upgraded models of its desktop computers, as well as a much-anticipated low-priced line of desktops, whose introduction is likely to further exacerbate the price war currently being fought among personal computer manufacturers and software suppliers.