NEW YORK (AP) -- IBM cut prices on many of its personal computers yesterday, following reductions on other models last month. The cuts are part of an industry trend that is prompted by the recession and increasing competition.
Analysts say the price reductions by IBM and other PC manufacturers are hurting profit margins at computer makers and computer retail stores alike. But they signal an opportune time for computer buyers.
Personal computer prices typically drop by 15 percent to 20 percent a year even without a soft market due to the continual decline in the cost of computer components, said Rick Martin of Prudential Securities Inc.