Having finally started making an impression in the US personal computer market, Digital Equipment Corp has decided to behave like a real personal computer company and slash prices left, right and centre. The company has started by cutting prices on 68 low-end computer and peripheral items by between 20% and 25%, with a 16MHz 80386SX-based PC316 with hard disk and monitor cut 28.5% to $1,250. It expects to slash prices on higher-end models shortly. And according to Electronic News, the price cuts are in part a reflection of the end-of-line nature of the low-end machines: DEC is to end its OEM arrangement for low-end machines with Tandy Corp and replace them with ones of its own manufacture, although it will continue an OEM arrangement with Tandy on different products. Despite its major investment in Ing C Olivetti & Co SpA, the move puts a question mark over continuation of DEC’s OEM agreement with Olivetti for desktop personal computers for Europe. DEC also buys Olivetti portables for sale worldwide. DEC will continue to source motherboards and chassis from Intel Corp for high-end machines, and its own will be made at its Taiwan plant, with finally assembly and test of both in Springfield, Massachusetts, but if volumes are sufficient, that might be moved to Albuquerque, New Mexico.
