Houston Chronicle Computing Column
Saturday, May 11, 2002 05:35:45 AM - Knight Ridder
May 11, 2002 (Houston Chronicle - Knight Ridder/Tribune Business News via
COMTEX) -- Even though personal computer prices have dropped dramatically,
buying one remains a significant purchase. That's a big reason the merger of
Hewlett-Packard and Compaq Computer Corp. gave owners of systems made by these
companies -- and folks thinking about buying them -- something to worry about.
Typically, when two companies merge, one brand goes away. Consumers are left to
wonder along the lines of the tag line from the slasher film The Texas Chainsaw
Massacre: "Who will survive, and what will be left of them?"
That's because no one wants to buy a computer that's soon to be orphaned by its
manufacturer. Tech support fades away, and replacement parts become harder to
find. Just ask the owners of Packard Bell or Toshiba PCs that were once
available at retail outlets but became victims of the businesses' low profit
margins.
In the case of consumer PCs from the combined Compaq and HP, there's good news
-- everyone survives.
For the foreseeable future, both the Compaq Presario and the HP Pavilion
nameplates will remain on store shelves and available for sale from the HP Web
site. HP has decided to keep both lines alive, at least through the company's
three-year product road maps.
That could change, of course, if this strategy doesn't appear to be working, but
it's a safe bet that both will be around until at least 2005.
Apparently retailers are glad, too. During a conference call with reporters
Friday, executives from HP's Personal System Group said those who sell consumer
PCs are pleased that both lines will remain available. Chances are, store
managers didn't relish the notion of yet another choice being taken off
consumers' shopping lists.
In order to keep the two lines alive over time, though, HP is going to have to
do something to make them more different from each other.
Today, Presarios and Pavilions compete in most of the PC niches, although there
are some differences.
For example, HP has the benefit of being able to bundle its PCs with its
printers and its digital cameras. Compaq offers its own printers, but they are
actually made by Lexmark and can't compare with HP's in terms of models and
features.
Compaq recently redesigned its Presario line to use the same chassis as its
business PCs. Compaq has long touted that its business line is very easy to work
on -- components snap in and out without screws, for example, and it takes just
a few seconds to turn a tower system into a desktop.
When asked about how the Presario and Pavilion lines might be marketed
differently, HP executives only say that plans are still being hammered out. But
the current design of the PCs -- along with comments made by HP President
Michael Capellas (formerly Compaq's chief executive) -- give some hints.
During a Webcast earlier this week in which the "new HP" was introduced,
Capellas hinted that one of the consumer PC lines would be aimed at home users,
emphasizing digital imaging, and the other might be a "gamer-type" product.
It's not much of a leap, then, to see where the lines are likely headed.
Expect HP to continue to push its Pavilion computers as home-user friendly,
particularly for those who have or want digital cameras.
The Presario line is apt to be aimed at power users, computing hobbyists who
like to tinker with their systems and gamers. The ability to easily update a PC
is crucial to this group.
It would also continue Compaq's drive to be perceived as offering cutting-edge
components. For example, its current line of Presarios includes a model that
comes with a version of ATI Technology's All-in-Wonder Radeon 8500 DV graphics
card with 128 megabytes of video memory. Compaq worked out a deal with ATI to
offer that card in its products months before it is available at retail -- or to
other PC makers.
However, don't look for this differentiation to be made immediately. Both
companies recently released their back-to-school line of PCs, and the upcoming
Christmas-season models are already on the drawing board. The split probably
won't become obvious until the January line is introduced -- the first models to
be designed by the merged organization.
There are still some decisions to be made about models in the pipeline. For
example, Compaq has been working on a tablet PC, part of an initiative with
Microsoft. That device is likely to be introduced before Christmas, a Compaq
spokesman said, but whether it will bear the HP or Compaq nameplate remains
uncertain.
HP executives also say that, initially, current owners of their products won't
notice much change when it comes to technical support.
There will continue to be different Pavilion and Presario phone numbers to call
for help, and although the Compaq and HP Web sites have been combined at the
front door, the online tech support areas remain separate.
As time goes on, though, tech support for consumers will be combined. Presario
and Pavilion owners should keep an eye on the HP Web site for details.
-- Send e-mail to dwight.silverman@chron.com. His Web site is at
www.dwightsilverman.com .
By Dwight Silverman
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(c) 2002, Houston Chronicle. Distributed by Knight Ridder/Tribune Business News. |
