Additions to Compaq's fall line - claim is the machines underprice both Dell and Gateway when shipping costs are figured in. (How about taxes?? <gg>). Actually, I've been checking Dell and Gateway sites for prices, it looks like Gateway is underpricing Dell on equivalent machines, especially at the 400mhz and 350mhz levels.
Compaq's new lines for
the fall
By Jim Davis
Staff Writer, CNET News.com
September 22, 1998, 1:40 p.m. PT
update Compaq Computer made its move for
the fall selling season today with several
additions to the Presario family of notebooks
and desktops, including a sub-$1,000 PC for
the education market.
The company is offering a Presario 2416ES
model with a MII processor from Cyrix for
schools that is priced at
$999, including a 14-inch
monitor.
Compaq is also rolling out a
notebook that is mainly
aimed for use in the higher
education market. The
Presario 1235ES comes
with a 266-MHz K6 processor from
Advanced Micro Devices, a 12.1-inch dual
scan display, and a 4GB hard disk drive for
$1,749.
Low-cost PCs from companies like Compaq
have been chipping away at Apple
Computer's lead in the education market.
Compaq rolls out new desktops, notebooks
Market
Computer
Processor
Hard drive
Price
Consumer
Desktops
Presario
5150
350-MHz
K6-2
8GB
$1,299
Presario
5170
350-MHz
PII
10GB
$1,599
Education
Desktops
Presario
2412ES
300 MII
4GB
$999 (1)(2)
Presario
2416ES
333-MHz
K6-2
8GB
$1,249
Consumer
Notebook
Presario
1235
266-MHz
K6
4GB
$1,699
Education
Notebook
Presario
1235ES
266-MHz
K6
4GB
$1,749
(1) Cyrix grades its MII chips according to a performance
rating. Actual megahertz speeds are lower. (2) Includes
14-inch monitr. Source: Compaq
Compaq was second to Apple in school
business in 1997, according to International
Data Corporation. Apple still maintains a
significant lead in the market, but the
Cupertino, California, company has seen its
once-unassailable lead slip, according to
analysts.
Researchers say the changes are
symptomatic of broader trends throughout
the computing industry. Microsoft and PC
manufacturers have been making steady
inroads in a business that will approach $5
billion in revenue in 1998, according to
market research firm Dataquest.
Compaq today also introduced new
notebooks and mid-range desktops for the
consumer market priced starting at $1,199,
specifically targeting direct sellers Dell
Computer and Gateway.
Compaq claimed that
its new Presario
5150, which ships
with a 350-MHz AMD
K6-2 processor and
8GB hard drive, is
priced 24 percent
less than an
equivalent model from Dell and 7 percent
less than a system from Gateway, when
factoring in the cost of shipping Dell or
Gateway systems to a customer.
Also, Compaq's $1,199 price includes a
$100 rebate that requires a customer sign on
for 50 hours of free Internet access with a
preferred service provider.
On many fronts, Compaq is responding to
the threat from Dell. Dell has made
tremendous sales gains in part due to the
company's cost and operations efficiencies
from its direct sales model. The company
closed in on Compaq as the second-largest
PC vendor in the U.S. in the second quarter
shipments, although Compaq has a far
stronger overseas presence.
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