IBM has introduced its first personal computer for under $1,000, after misjudging how quickly low-price PCs caught on with consumers.

The world's largest computer maker said the Aptiva €16 is designed for first-time buyers who want a PC with most of the bells and whistles such as sound and flashy graphics, and for existing PC owners who want a second machine in the home.

Compaq, the No. 1 maker of PCs, Gateway 2000, Hewlett-Packard and others all have had PCs that cost less than $1,000 on the market for months.

--(New York Times Service)