McMannis - Looks like AMD is REALLY LOSING the low end - Compaq is announcing a Pentium /// Internet PC for only $499.
The silver and black device, which weighs just over 10 pounds and is only 40 percent as large as the conventional beige box PC, is designed as a desk-side computer and runs Intel Corp.'s (NasdaqNM:INTC - news) latest Pentium III chips.
I think Intel's low manufacturing costs are coming into play here !
Paul
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biz.yahoo.com
Wednesday November 10, 10:20 am Eastern Time
Compaq unveils $499 corporate Web access computer
NEW YORK, Nov 10 (Reuters) - Compaq Computer Corp. (NYSE:CPQ - news) on Wednesday unveiled a slimmed-down, full-powered corporate Internet-access computer priced at $499, marking a break by the world's No. 1 personal computer maker with bulky, feature-loaded machines of the past.
At a news conference here today, Houston-based Compaq is set to introduce its new iPaq, which the company describes as an Internet-access device for office employees, replacing its traditional desktop PC models.
Compaq is seeking to get a jump on its rivals, many of whom are expected to show off similar devices next week at Comdex, the industry's big annual trade show. PC makers are gearing up to offer a new range of Internet-ready machines to coincide with the release of Microsoft Corp.'s (NasdaqNM:MSFT - news) next-generation Windows 2000 software in February.
''This is a step in the company's plan to redefine Internet access,'' Michael Capellas, Compaq's recently named chief executive, said in an interview ahead of the announcement. ''We are offering a simpler computer with great design that takes a lot of complexity out of the personal computer.''
The silver and black device, which weighs just over 10 pounds and is only 40 percent as large as the conventional beige box PC, is designed as a desk-side computer and runs Intel Corp.'s (NasdaqNM:INTC - news) latest Pentium III chips.
The sleek boxes take advantage of re-engineering efforts led by Intel of key internal components that allow computer makers to offer unprecedented variations in the size and shape of new models.
''We think there's going to be a transition of two to three years when 50-60 percent of the volume becomes devices (like these),'' Capellas said. He said that 15 percent of the corporate computers it sells over the next year will be iPaq computers, but added, ''this might be a little conservative.''
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