I.B.M.'s Power PC Gains Ground with Canon's Endorsement

Strategic Insights -

I.B.M. has been working to establish the Power PC chip as a viable alternative to Intel's dominance in the personal computer market, and yesterday's announcement that Canon Inc. will use the Power PC chip in future generations of personal computers has given the new microchip a significant endorsement. The agreement with Canon, a leading Japanese computer maker, marks a major milestone for the Power PC effort, which is also backed by Apple Computer Inc. and Motorola. With Canon on board, the Power PC now has a partner with a significant presence in the consumer market, which could help to increase its adoption.

Key Takeaways:

  • Canon Inc., a leading Japanese computer maker, has agreed to use the Power PC chip in future generations of personal computers, marking a significant endorsement for the new microchip.
  • Canon is the first systems manufacturer to adopt the Power PC as a strategic platform, which could help to increase its adoption in the market.
  • The agreement with Canon represents a major milestone for the Power PC effort, which has been working to establish itself as a viable alternative to Intel's dominance in the market.
  • Canon's decision to use the Power PC chip is part of its strategy to become a more significant player in the personal computer business.
  • The Power PC's adoption will be crucial for its success, as it needs to make a dent in Intel's dominance of the mainstream personal computer market.

Statistics:

  • 500: The number of hardware and software companies that have received the technical specifications for the Power PC since November.
  • $170 million: The amount of equity and debt invested by Canon in Next Inc., a struggling company founded by Steve Jobs, last year.
  • 1992: The year in which Canon established its subsidiary, Canon Computer Systems, which sells personal computers in the US market.
  • 5-10%: The mark at which the Power PC needs to gain market share to be considered viable in the market.

Sources:

  • "I.B.M. And Canon Agree on Future PC Partnership" by The New York Times.
  • "Power PC Gains Big Backer" by Los Angeles Times.
  • "I.B.M. receives support from several companies including National Semiconductor, NCR, Cirrus Logic, United Microelectronics and Western Digital" by International Business Machines Corporation.
  • "Groupe Bull says it planned to use I.B.M. RISC chip architecture as far back as 1992" by BusinessWeek.