A number of company names (i.e.. Merisel. SCI Systems. Acer, and Wearnes Technology) are mentioned In the same breath as Ambra, the new IBM subsidiary that will sell lower-than-low-end PCs.

The companies listed above will contribute as much to the manufacturing, distribution, and support of Ambra's PCs as IBM will. For example. SCI will build Ambra's motherboards. Acer is providing systems development and subsystems technologies. and Merisel Is handling the order taking. With IBM playing a ledb dominant role than ever before, analysts say one question that users will inevitably ask is: Can Ambra maintain the quality they expect of IBM systems?

Rival Compaq boasts Inhouse manufacturing across Its product line. Dell says It has brought all Its manufacturing in-house, giving Compaq one less point of contrast, and Gateway 2000 has brought in all its desktop manufacturing as well. Necessity or good marketing? "There's no reason why >you should have lousy quality whether you outsource or not, says David Wu. analyst for market research firm 8. G. Warburg in New York City. The key. he adds. Is how well products are tested

What remains to be seen la the effect Ambra will have on the competition. Also open is

how Ambra sales might dip Into those of IBM's own Value-Point, particularly In a mail-order channel that generates 10 per cent of that line's sales — a sizable portion considering the profit margins of low-end systems. It almost seems like the company Is duplicating effort.