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Why was the IBM PC discontinued?
Services and software proved to be more profitable. For a time, IBM kept selling PCs because it made it easier to sell services. But eventually that stopped being enough of an advantage, so IBM sold off its PC line in 2005 to Lenovo.
Why was IBM so successful?
However, IBM’s success was also the result of a devoted labor base and progressive corporate culture well ahead of its time. Fostered by the late chairman and CEO Thomas J. Watson, Sr., this culture emphasized a “family” atmosphere at IBM with Watson as father figure and provider for his employees.
Why did IBM fail in the 1980s?
A Failure at Fundamentals. In the 1980s, IBM’s profit margins suffered a steep decline. Because the company’s costs remained level, profits dropped. Critics of the company have widely attributed IBM’s decline to two factors. During this period, IBM became a follower of technological development, more so than in the past.
When did IBM become the dominant computer company in the world?
In this era, IBM’s dominance of the computer market was almost complete, with the company making 60\% to 70\% of all business computers worldwide. The modern era of IBM arguably began in 1981 with the Personal Computer 5150, or the “PC.”
Why was it so hard to sell IBM computers?
IBM’s computers at that time were no worse than anyone else’s, but I had an extremely difficult time selling them. Many consumers didn’t trust IBM and didn’t want to get somehow locked in. There was nothing wrong with those machines, but it sure was a lot easier to just sell them a Compaq.
Is IBM making a comeback?
IBM is making a comeback. Although many observers had counted the company out — “It’s a dinosaur, an implosion, a wreck,” various commentators said — its revival was probable, even predictable, because cycles of decline and revitalization have been the company’s pattern through many decades.