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Technology Stocks : Compaq

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To: hlpinout who wrote (46406)5/8/1999 3:31:00 AM
From: hlpinout   of 97611
 
Editors' Choice -- Compaq, Twinhead deliver convenience

May. 07, 1999 (Computer Reseller News - CMP via COMTEX) -- The CRN Test Center gave its Editors'
Choice award to Compaq Computer Corp. and Twinhead Corp. for their three-spindle notebooks. While all
the notebooks in this roundup were fast machines with big, bright screens, these two notebooks combined
the best features, convenience and reseller profitability.

All of the notebook computers included in this roundup offer convenience and processing power unheard of in
a mobile computer just six months ago. So instead of making performance the main consideration, Test
Center engineers focused on convenience and quality, factors that will have a greater impact on a user's
opinion of a notebook computer over the long run.

For convenience, engineers looked at the location of the drive bays. A notebook with both the floppy and
CD-ROM drives out in front is easier to use than one with the drives on the sides.

Compaq wisely puts both drives in front of the user but then goes a step further with a convenience factor not
seen in any of the other notebooks: an internal power supply. While the unit weighs roughly the same as a
traditional notebook-cum-power supply, there is a convenience factor here that cannot be overlooked.

Unfortunately, Compaq chose a proprietary three-prong cable to connect the notebook to wall power rather
than a standard two-prong power cable. Still, relieving the harried user rushing to the airport from the power
brick is a significant advancement in the notebook world. Although the Compaq Armada 1750 looks taller
than it is, its weight of less than 8.5 pounds actually makes it a bit lighter than similar products.

At 8 percent to 14 percent margin, Compaq's offering is competitive and joined with top-notch lead
generation and MDF, it is a winner. Wisely, the company provides price protection and free shipping on
DOAs, something other companies are starting to abandon.

Twinhead's strength is its willingness to work with resellers, particularly smaller ones that only occasionally
land big orders. With its large Taiwanese parent company behind it, Twinhead's margin tends to stick at
about 14 percent, and the company is not shy about competing on price if that is what it takes to get the
end user to sign. Twinhead also will custom-configure notebook orders for as few as 10 units.

The Twinhead notebook's real strength, of course, is in beating other notebooks on benchmark tests. On
more than half of the performance tests, the Twinhead unit was the fastest. Good performance means
nothing in a nuisance notebook, but the Twinhead unit has a fantastic design in addition to top performance.
The Twinhead notebook has both an LS-120 drive, compatible with standard floppy disks and 120-Mbyte
LS-120 disks, and a DVD-ROM drive mounted on the front edge. Though lots of vendors offer LS-120 and
DVD-ROM drives as options, Twinhead was one vendor that equipped the sample unit with them.

From a technical standpoint, the Test Center was impressed with notebooks from the relatively unknown
Trogon Computer, as well as stalwarts Acer, Dell, Gateway, Jetta and IBM. Trogon's notebook computer is
sturdily made and one of the top-three performers in the roundup.

The Acer notebook has a quality look and feel, but it offers middle-of-the-road performance.

Though several vendors now offer notebook computers with 15-inch screens as options, only Dell and
Gateway submitted such units. The Dell notebook is a jewel, with a beautiful design and a rugged shell,
although performance was about average. Not quite as rugged as the Dell, the Gateway notebook was one
of the top-three performers. Jetta International also makes a good notebook, with a similar look and feel to
Twinhead. But the Jetta notebook does not have as sharp a design as the Twinhead unit, nor did
performance match the Twinhead.

IBM always impresses the Test Center with its notebook computers, as it did once again in this roundup.
The ThinkPad 570 has a convertible three-spindle design. By itself, the ThinkPad 570 is a 4-pound notebook
with no built-in drives other than its hard drive. But with an optional base unit attached, the ThinkPad 570
converts into a full-featured three-spindle notebook that still weighs less than 7 pounds. Unfortunately, this
beautiful product costs more than similarly configured units from other vendors, and its 13.3-inch screen is a
shortcoming.

In the channel, NEC Computer Systems Division also deserves a look. Now backtracking from a direct-only
model-a "miscalculation" in the words of one NEC executive-the company's hybrid strategy of prebuilt and
BTO machines is quite flexible. NEC, like some other vendors, also offers a program for assisting resellers
with local and state government and education orders.


Compaq Armada 1750
Price: $3,099 (street)
Company: Compaq Computer Corp.
Location: Houston
(281) 370-670, (800) 345-1518
www.compaq.com
Twinhead Slimnote GX-36TK64
Price: $3,199 (street)
Company: Twinhead Corp.
Location: Fremont, Calif., (510) 492-828, (800) 995-8946
www.twinhead.com
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