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AT&T; Expected to Revitalize Its Computer Line

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From Reuters

American Telephone & Telegraph, in an effort to revitalize its listless computer business, is planning next month to introduce its most powerful personal computer ever, industry analysts said Wednesday.

They said the AT&T; announcement, set for Sept. 2, may also include an addition to the firm’s minicomputer family and other computer networking products.

An AT&T; spokesman declined to comment on the company’s computer plans. But he noted that the company has previously said it would offer powerful new PCs and minicomputers by year-end.

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PCs are typically used by individuals while the larger, more powerful minicomputers can be used by dozens of operators at the same time. AT&T; first entered the computer business after its court-ordered breakup three years ago, but its computer lines have shown mixed results, analysts say.

Denied Published Rumors

Analysts said AT&T; needed to update its computer lines because it had fallen behind rivals such as Digital Equipment Corp. and International Business Machines, which have recently introduced an array of new computers.

“If AT&T; is really going to dispel the rumors that they are getting out of the computer business, they are going to have to be more active with product introductions,” said John McCarthy, an analyst with Forrester Research of Cambridge, Mass.

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AT&T; has consistently denied published reports that it will leave the computer business.

Analysts said it was almost certain AT&T; would unveil its most powerful PC ever in September, a machine based on Intel Corp.’s new 80386 microprocessor.

Analysts said AT&T;’s 386-based PC would be supplied by Ing C. Olivetti SpA, the Italian conglomerate in which AT&T; holds a 25% stake and which makes many of its other PCs.

The 386 PC would be AT&T;’s first major new computer since it introduced a new version of its 3B minicomputer last March.

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