Over the next decades, IBM made heavy investments in research and development under Thomas Watson, Jr., who took over from his father as IBM president in the mis-1950s. IBM capitalized on its manufacturing expertise to produce a full line of peripheral equipment: printers terminals, keypunch machines and card sorters that brought enormous profits for IBM and unbeatable competition for other computer manufacturers. By the mid-1950s, IBM threatened to dominate the entire computer industry with its fast-selling Model 650. IBM also offered its computers for sale for the first time instead of renting them as it previously had insisted. This allowed leasing companies to buy computer equipment from IBM and then rent it to computer users at prices lower than IBM itself could charge. These changes opened up competition in the computer services and equipment leasing markets.
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