I've been gone all day and don't know if this got posted. El Compaq rolls out $699 PC
By Brooke Crothers
Staff Writer, CNET News.com
October 12, 1998, 11:45 a.m. PT
update Compaq released a $699 Internet PC today, as
the No. 1 PC manufacturer strives to drive down
prices still further and compete with Apple
Computer's Internet-centric iMac and consumer PCs
from Hewlett-Packard.
The $699 price tag comes
only after application of a
$100 rebate, according to
the company.
The system is billed as
the newest "Presario
Internet PC" and comes
with an M II processor from National Semiconductor's
Cyrix division, 64MB of memory, CD-ROM drive, a
4GB hard drive, and 56-kbps modem.
The Presario 2266 also offers room to expand, a new
twist on the low-cost PC design from Compaq. To
date, most of Compaq's lowest cost designs did not
offer the capability to add components.
The system has room for add-in circuit boards, extra
hard drives, and ZIP or Superdisk drives, the
company said.
Compaq also cuts notebook prices
Model
Old Price
New Price
Percent
Reduction
Armada 1598DMT
$2,499
$2,299
8%
Armada 1700 /PII
233 /TFT
with Win95 or 98
$2,499
$2,299
8%
Armada 1700 /PII
233 /TFT
$2,999
$2,799
6.7%
Armada 1700 /PII
300 /TFT
$3,799
$3,499
7.9%
Source: Compaq
It also comes equipped with a standard floppy
drive--in contrast to Apple's iMac, which lacks a
floppy drive.
But there's a small catch on the low price--and
buyers should read the fine print on the rebate as it is
valid only by signing on to a Compaq service trial: The
"$100 mail-in rebate offer valid with activation of
50-hour free trial of Compaq Easy Internet Access
from Compaq Internet Setup," according to the
company.
"It's a service market going forward," said Scott
Miller, a consumer PC analyst at Dataquest. "You
get the rebate with the Internet service, and Compaq
has a revenue stream associated with the Internet
service, from the ad revenue and electronic
commerce. The PC ends up being an entry point."
"It's a little too early to
tell, but I believe it will be
a winning strategy," Miller
added.
Compaq has seen its
market share erode
slightly in the consumer
space. Hewlett-Packard
and Apple had the
best-selling PCs in the consumer market in August,
according to PC data.
Based on a survey of catalog and retail sales
operations, PC Data said the HP 6330 represented
8.6 percent of all systems sold, while the iMac rang
in with 7.1 percent of sales. The showing was good
because the iMac was only available for sale 17 days
in August.
"The iMac has opened up a couple of issues around
the Apple ease-of-use, and
ease-of-getting on the Internet,"
Miller said.
"If you believe the early
indications that the iMac is
selling well with first-time buyers, Compaq is
competing for those dollars."
Although Compaq still leads in the consumer market
with 30.9 percent of systems sold in August, Apple
advanced to the third spot with 13.5 percent market
share, up from 6 percent the month before. HP was
second with 23.2 percent, and IBM was fourth with
10.5 percent. |
