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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (77055)	3/8/2001 8:52:47 AM
From: Box-By-The-Riviera™	Respond to of 436258

AMSTERDAM, March 8 (Reuters) - Hewlett-Packard Co. (H-P) said on Thursday it had cut by 28 percent the price it charges European service providers for its newest computer servers. The U.S.computer and printer maker cited stiff price competition from rivals Sun Microsystems <SUNW.O> and IBM <IBM.N>. H-P said the average base price of its LP1000r and LP2000r net servers, launched in January and sold to Internet and application service providers (ISPs/ASPs) and telecom carriers, would drop to about $2200 from an average of about $3000. "It's a price war... this is our most important market in Europe," said a spokesman. "Over 40 percent of HP's business to business revenue is generated from or related to the telecommunications or A/ISP sector," H-P said in a statement. H-P warned in mid-February that its full-year 2000/01 earnings were likely to fall short of expectations, blaming the declining U.S. economy. In late February, Moody's Investors services said it had placed H-P long-term credit ratings under review for a possible downgrade citing increased competition and profit pressure in personal computers, servers and other H-P markets. The servers are Intel-based and can be run on Microsoft Windows NT <MSFT.O> or Linux operating systems.