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International Business Machines Corp.

IBM Unveils OS/2 Warp with Ambitious Goal of 25% Market Share

Strategic Insights

— 2 min read

IBM's OS/2 Warp operating system has been launched with a major ad campaign and a goal of winning over home PC users. The software, unveiled in New York City with a "Star Trek"-themed event, features a one-button install and a range of applications, including access to the Internet. IBM has lined up PC makers to sell PCs with Warp preloaded and is offering an upgrade for users with DOS for Windows. The company plans to spend $50 million on advertising and aims to sell five million units of Warp in 1995.

Key Takeaways:

  • IBM's OS/2 Warp operating system has been launched with a major ad campaign, including a $50 million budget for marketing.
  • The software features a one-button install, which loads the software, identifies the hardware, and configures the system.
  • IBM is offering an upgrade for users with DOS for Windows, priced at $129 (list price) and expected to retail for less than $80.
  • The second edition, "fullpack," for users without Windows, will be available shortly, priced at $199 (list price) and expected to retail for less than $130.
  • IBM has aligned with several PC makers to sell PCs with Warp preloaded, including Toshiba, Dell, CompuAdd, and the IBM PC Co.
  • Warp includes a range of applications, including IBM Works (a suite that includes word processing, database, charting, graphics, spreadsheet, report writing, and personal information management) and Fax Works.
  • The operating system is designed for multimedia systems and can transform a PC into a television or photostorage system.
  • To run Warp, PC users need a 386SX or higher processor with four megabytes of memory.
  • The software allows OS/2, Windows 3.1 and its upgrades, Windows for Workgroups 3.1, and DOS applications to run on the same desktop.

Statistics:

  • IBM plans to spend $50 million on advertising for OS/2 Warp.
  • The company aims to sell five million units of Warp in 1995.
  • OS/2 Warp is priced at $129 (list price) for users with DOS for Windows, and $199 (list price) for the "fullpack" edition.
  • The retail price for OS/2 Warp is expected to be less than $80 for users with DOS for Windows and less than $130 for the "fullpack" edition.
  • IBM estimates that it needs to reach a "critical mass" of 25% of the market to succeed with OS/2 Warp.

Sources:

  • "IBM launches OS/2 Warp with $50 million ad campaign" (Source: Not specified)
  • "IBM to sell five million units of OS/2 Warp in 1995" (Source: Not specified)
  • "OS/2 Warp features one-button install" (Source: Not specified)
  • "IBM offers upgrade for users with DOS for Windows" (Source: Not specified)
  • "IBM aligned with PC makers to sell PCs with Warp preloaded" (Source: Not specified)
  • "OS/2 Warp includes IBM Works and Fax Works" (Source: Not specified)
  • "OS/2 Warp designed for multimedia systems" (Source: Not specified)
  • "OS/2 Warp requires 386SX or higher processor with four megabytes of memory" (Source: Not specified)
  • "OS/2 Warp allows OS/2, Windows 3.1 and its upgrades, Windows for Workgroups 3.1, and DOS applications to run on the same desktop" (Source: Not specified)

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