Hope so! Have a look at IBD's tomorrow article.
Compaq Rebels Against Intel - Again
Date: 1/6/98
Author: Nick Turner
The race to the bottom continues for the personal computer industry. Compaq Computer Corp. is announcing today a $799 model that runs on Advanced Micro Devices Inc.'s AMD-K6 processor.
It's part of a new line of consumer machines that is the broadest ever for the Houston-based PC maker, the industry's market leader. In total, Compaq is introducing 15 new models: 10 for the home, four for schools and one for small business.
Industry observers are most interested in Compaq's use of Sunnyvale, Calif-based AMD's processor in its new sub-$800 PC. It's been years since Compaq has used an AMD chip, and the decision should send a message to Intel Corp. Santa Clara, Calif.-based Intel is the dominant maker of PC microprocessors - chips that form the brains of a computer.
The move should prod Intel to cut prices on its lower-end processors even more, says Andy Bose, president of Access Media International Inc. in New York.
''As the dominant player in the PC market, Compaq is really trying to exert its influence,'' Bose said. ''Compaq is making it clear that it has a choice.''
Intel appears to be getting the message. Hewlett-Packard Co. in Palo Alto, Calif., made news Monday by introducing a $799 PC, featuring a 200-megahertz Intel Pentium MMX chip. The computer was the first sub-$800 PC to use an Intel processor.
The $799 price point is not new for Compaq, nor is the apparent rebellion against Intel. An earlier model used the MediaGX chip from Cyrix Corp., a unit of National Semiconductor Corp., also of Santa Clara. The K6 chip, however, is a next-generation chip, more comparable to Intel's Pentium II processor.
What do you get with the $799 PC? In addition to the 200-megahertz processor, Compaq's new Presario 2240 comes with 32 megabytes of memory, a 56-kilobit-per-second modem, a CD-ROM and a 2.1-gigabyte hard drive. The monitor is extra, though. Add that component, and the total price is just under $1,000.
Compaq claims the new processor gives it an edge over other sub-$800 PCs. According to its tests, the Presario 2240 was 35% faster than similarly priced PCs from Packard Bell NEC Inc. of Sacramento, Calif.
The company is by no means abandoning Intel, though. All of its higher-end PCs use Intel chips.
Compaq also announced price breaks on its notebook PCs. Priced at $1,999, its Presario 1220 comes with a 200-megahertz MediaGX processor, 32 megabytes of memory, a CD-ROM and a 2.1-gigabyte hard drive.
''We've never introduced a full multimedia notebook at that price level before,'' said Rod Schrock, vice president of Compaq's Presario division.
Compaq also hopes its new PCs will earn kudos in the education market. According to International Data Corp. in Framingham, Mass., Compaq was first in the Windows education market in the third quarter. Ailing Apple Computer Corp. in Cupertino, Calif., still leads the overall market, but Compaq expects to gain share.
''We have a major strategy shift here,'' said Schrock. For the first time, he says, education PCs are only priced slightly higher than home PCs.
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