IBM has cut the price of the controversial PC in an attempt to boost its flagging sales.

The smallest model, previously costing $669, comes down to $599, and the 128K model is reduced by roughly 20 per cent to $999 from $1,269.

The move had been predicted by US analysts when IBM relaxed its usual terms for dealers, to ease their burdens in carrying stocks of unsold PCjrs.

IBM has also announced new versions of the PC, PC XT and Portable, effectively lowering hte price of the first two - but these developments are not to be echoed in the UK.