IBM Lowers Prices as a result of Greater Efficiencies Achieved Through Channel Assembly
SOMERS, NY (February 09, 1998) – IBM* today announced price reductions of up to 32 percent(1) on select IBM ThinkPad* notebooks and IBM Netfinity* servers. The aggressive pricing of some of IBM’s most popular models results from continued efficiencies achieved through its Advanced Fulfillment Initiative (AFI).
AFI, which simplifies how IBM ThinkPads and Netfinity servers are built, customized and delivered, is enabling IBM to lower costs and pass the savings to customers. For example, customers who desire the most advanced mobile computing technology available today can now purchase a ThinkPad 770 notebook — the top of the line notebook PC Magazine recently named best PC in the industry — for $5,199, a $2,000 reduction. The award-winning ultraportable ThinkPad 560, ThinkPad 380 and ThinkPad 310 series notebook computers have also been reduced in price by up to 27 percent.
The price of a powerful, four-way symmetric multiprocessor enterprise server — the new Netfinity 7000 — with enhanced scalability, management, service and support features that deliver high availability has been reduced from $15,975 to $11,389, a 29 percent decrease. Additionally, IBM reduced prices of up to 32 percent on select PC Server 330, PC Server 325 and PC Server 315 models.
“We are encouraged to see the size of these price decreases, because it validates the impact of IBM channel assembly and AFI,” said Ed Anderson, president and chief executive officer, CompuCom Systems, an IBM Business Partner.”We think corporate buyers will react favorably to this announcement.”
IBM was the first vendor to ship channel-assembled notebook computers and server products through its build-to-order initiative called the Authorized Assembler Program (AAP). Introduced more that two years ago, AAP is part of IBM’s Advanced Fulfillment Initiative, which enables the rapid delivery of custom-configured products by IBM Business Partners.
The unique chassis designs of the Netfinity and ThinkPad products facilitate channel assembly, which improves customer satisfaction by enabling resellers to deliver fully customized solutions based on individual businesses’ requirements. The design also simplifies customer support by providing resellers unprecedented access for easier maintenance and system upgrades. For example, the innovative chassis of the new Netfinity 7000 system simplifies access to critical system components from the top, front or back without tools, to easily reach adapter cards, memory and processors.
Source: IBM