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announcement that it would no longer publish list prices for its
9021 and 9121 computer models, and that it would provide discounts
to purchasers of those models in order to retain its market share;
(3) increased competition from other manufacturers (such as Amdahl
Computer Corp. and Hitachi Data Systems, Inc.); and (4) IBM’s
adoption of a “market basket approach”, whereby IBM bundled
hardware, software, and services into a single package, charging a
single price.
Respondent’s experts testified that in 1993 the mainframe
market community was aware that IBM would be introducing new
technology22 which would shorten the lives (and adversely affect the
residual values) of the IBM 9021 and 9121 models; however, they
acknowledged that the specifics of the new technology were unknown.
Ms. Middleton acknowledged that in the fall of 1993, there was some
speculation as to whether IBM could successfully develop CMOS
technology, and if IBM could, when IBM would be able to bring a
product (using that technology) to market.
The September 1993 ARI appraisal claims that the “unusual
pessimism” of the residual value estimates by the Gartner Group,
IDC, and DMC are the result of several assumptions, including the
prediction that “IBM will introduce revolutionary technology in
January 1996 and that the value of * * * [the computers] will
22 A Nov. 10, 1993, New York Times article reported that
IBM had introduced a big new computer to replace its antiquated
mainframe line.
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