Fort Lauderdale News from Fort Lauderdale, Florida • Page 47

3 time IBM skillfully revives lackluster sales of PCjr Weekly Business, Monday, Nov. 5, 1984 Big PCjr sales I 1 iMt iiiiiiiiiiB jpafiini i 1 ut lllliltiiF iiii-imii mi in tttmnimmimmmt, mim i-'IVt mm. ii i hi in iil-v ii in nil Kri1-l--jfl SK 'M A I photo Average number of units sold per store in retail computer outlets January 1.9 February 4.0 March 3.0 April 2.7 May 1.5 June 1.9 July 2.0 August 2.6 September 4.2 Source: Future Computing Inc. By Philip Bulman Business Writer International Business Machines Corp. may have done the impossible.

Just a few months ago, computer industry analysts had all but signed a death certificate for PCjr, a smaller model of the company's highly popular personal computer. Developed at IBM laboratories here, PCjr was introduced a year ago following months of highly publicized speculation surrounding how the world's largest computer manufacturer planned to grab yet another piece of the rapidly growing personal computer market. But within months, it was clear that the machine was a flop. PCjr, it seemed, was too expensive for many individuals, and not powerful enough for many small businesses. Sales of the machine declined with each passing month.

But IBM has apparently rescued the machine from obscurity through a series of price cuts and product improvements in what analysts describe as a turnaround that is unprecedented in the short history of the personal computer industry. And PCjr is now selling at a sizzling pace. Future Computing a Texas market research firm that tracks the fortunes of the personal computer industry, reports that sales of PCjr are now running higher than ever before, after sinking to a low point this summer. The company forecasts that 1984 sales of PCjr in the United States will total 275,000 units, bringing IBM $372 million. IBM itself does not reveal sales figures.

But company spokesman Rick Scott said officials are pleased with the recent sales performance of PCjr. "I can tell you that sales of PCjr have improved significantly," he said. IBM's Entry Systems Division, which is headquartered in Boca Raton, is responsible for developing the company's line of personal computers. IBM employs 8,500 people in Boca Raton, making it Palm Beach County's largest corporate employer. The company is continuing its massive advertising campaign, which started in August, and plans to advertise heavily through the end of the year, Scott said.

Norm DeWitt, an analyst with Dataquest a California market research firm, said PCjr is now a much more desirable product. "In our opinion, IBM has fixed all of the technical deficiencies," he said. DeWitt described the improved PCjr as a "viable high-end home computer as well as a business computer." IBM faced a number of problems in marketing PCjr. The company had been widely criticized by experienced computer buffs who found the keyboard uncomfortable to use because of its "chiclet-style" keys. And the price of the machine put it out of reach for many consumers, while the limited memory made it unattractive to many businesses.

Faced with a precipitous sales slide, IBM made a series of moves this summer designed to make the machine more attractive. In June, IBM cut the price of its PCjr entry level model to $599, and slashed the price of its larger PCjr model from $1,269 to $999. The company followed up in July with a number of improvements, including a new keyboard, an expanded memory, and several new educational uses for the machine. And in August the company launched a major advertising campaign, emphasizing that PCjr was "growing by leaps' and bounds." Innovation chronology US' November, 1983: IBM unveils PCjr. January, 1984: Shipments reach retailers.

June 7: IBM slashes prices. July 31: The company introduces a new keyboard, an expanded memory, and several new educational uses for the machine. August 5: Massive PCjr ad campaign starts. 1 2 J.eS In introducing the new keyboard, the company nipped a major source of criticism in the bud. IBM made its new typewriter style keyboard standard equipment on new models of PCjr, and also made it available at no charge to those who had already purchased one of the machines.

And in introducing an optional 128 kilobyte memory expansion unit, IBM made PCjr more attractive to the small business market by giving it the ability to use many popular business computer programs. As many as three of the attachments can be used to boost the machine's memory up to 512 kilobytes roughly equivalent to 336 typed pages. DeWitt of Dataquest said that if all these changes succeed in bringing PCjr back from the brink of extinction, it will be a first for the industry. In the past, any personal computer that got a bad reputation during its first few months on the market was seemingly doomed. No company has ever been able to make such a product popular, he said.

But with all the improvements combined with an extremely aggressive marketing push, IBM may succeed, DeWitt said. In comparing features of PCjr to the Apple He, produced by IBM's archrival in the industry, "Junior wins darn near every one," he said. 1 Scenes like these from TV ads have helped boost slackening PCjr sales..