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Technology Stocks : Compaq

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To: Lynn who wrote (73898)12/15/1999 9:08:00 PM
From: Elwood P. Dowd  Read Replies (1) of 97611
 
Compaq hopes to do an iMac

John G. Spooner, ZDNet

Compaq Computer Corp. plans to deliver a new-look, "legacy free" PC designed to take on
the likes of Apple Computer Inc.'s iMac and Dell Computer Corp.'s WebPC.

The Houston, Texas-based PC maker will demonstrate the new PC at next month's Consumer
Electronics Show in Las Vegas, unveiling a retro design that sources say will remind onlookers of an
old-fashioned toaster. It should ship within a few weeks of its Las Vegas debut, sources said.

Besides the toaster-like design, the new PC also promises to follow the
best-selling iMac's lead by eliminating old-style components in favor of a
universal serial bus (USB) interface for connecting peripheral devices.

The legacy-free idea is simple. While PCs have added numerous new
technologies over the past few years, hardly any older (little used)
technologies have been eliminated from their design. (For example, most
PCs have the 16-bit ISA bus, used for connecting 16-bit cards, even
though the ISA bus has been replaced by the 32-bit PCI bus and is no
longer necessary.) By concentrating on new technologies such as the
USB interface, PC makers hope to deliver consumers cheaper, easier to
use PCs.

Following Apple's lead
Analysts, such as International Data Corp.'s Roger Kay, say that Apple (Nasdaq: AAPL - news) has
shown the legacy-free PC approach to be a good one.

At the same time, Compaq (NYSE: CPQ - news) "has been salivating to address more than half of the
market with this form factor or one similar to it," said Kay, who is manager for IDC's Desktop PC
Practice.

The product won't look like Compaq's other legacy-free PC, the iPaq, which is aimed at corporations.
The $499 to $799 iPaq, which debuted in early November, was the company's first step into the
legacy-free arena. Its focus was somewhat different, however, aiming to provide corporate customers
with a stable, easy-to-service platform.

The forthcoming consumer PC, instead, will be geared towards providing buyers with a host of
technologies including, at least, an optional CD-ReWritable drive, sources said.

The PC will likely support other popular consumer technologies, such as DVD and home networking,
as well.

While PC makers work to develop their legacy-free lines, Apple's iMac, essentially the first "legacy
free" computer to focus on USB, has been selling well at retail.

Dell (Nasdaq: DELL - news) also recently joined in the game with its WebPC. The PC, priced starting
at $999, offers five USB ports as well as services such as Internet access and Dell E-support, which
offers users, among other things, online access to technicians.

See this story in context on ZDNet

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