Wednesday March 18, 8:31 am Eastern Time
Company Press Release
Compaq Redefines Customer Value with Sweeping Pricing and Promotional Actions
Bold Price Cuts, Aggressive Trade-In and Financing Programs, and Monitor Giveaway Create Unbeatable Offerings for Commercial Customers
HOUSTON--(BUSINESS WIRE)--March 18, 1998-- Compaq Computer Corporation (NYSE:CPQ - news) today announced in the U.S. price cuts, a free monitor promotion and a trade-in program designed to further extend the value of Compaq products to commercial customers. Aggressive price cuts have been made on select models in the Deskpro product line and the monitor family, a broad-reaching trade-in program is now available on non-Compaq servers and workstations, and a special 4.9% Financing(H) program takes effect today on all Compaq PC hardware, options and services.
Price cuts of up to 11 percent have been taken on select Deskpro models and up to 15 percent on select Compaq monitors. With the purchase of certain Deskpro models, customers will receive a free Compaq V50 15-inch (13.5-inch viewable) color monitor(A). Simultaneously, Compaq Capital Corporation, Compaq's financial services subsidiary, is sponsoring two new programs. First, a trade-in program provides aggressive credits to commercial customers who trade in certain non-Compaq servers and workstations toward the purchase of a new Compaq server or professional workstation. In addition, the 4.9% Financing(H) program will make it even easier to acquire or lease new Compaq laptops, desktops, workstations, and servers.
''As the number one vendor of commercial desktops, branded monitors and PC servers (B), Compaq continues to deliver the best quality products at industry-leading prices,'' said Michael Heil, Senior Vice President, Worldwide Marketing, Sales, Service and Support, Compaq Computer Corporation. ''Today's aggressive pricing action and bold promotions, combined with the Compaq brand name, provide our commercial customers with the best value available in the market.''
Today's announcement follows recent price cuts and promotion announcements on the Armada portable computers (C), the ProLiant Servers (D), and the Compaq line of Professional Workstations (E).
Deskpro 2000 Price Reductions
Prices for Compaq Deskpro 2000 models have been reduced from 6 percent to 11 percent. Prices now start at $859 (F) with the Deskpro 2000 Model 5166X/2100 which comes with a 166 MHz Intel Pentium(R) processor with MMX(TM) technology. With prices ranging from $859 to $2,089, the Compaq Deskpro 2000 series offers customers a choice of processors ranging from the 166 MHz Intel Pentium processor with MMX technology to the 300 MHz Intel Pentium II processor.
Deskpro 4000 Price Reductions
Select Compaq Deskpro 4000 models have been reduced in price from 4 percent to 10 percent. Powered by Intel Pentium processors with MMX technology and Intel Pentium II processors of up to 333 MHz, the Deskpro 4000 line delivers high-powered performance, manageability and quality in a network-ready PC. Prices on the Deskpro 4000 line now range from $919 to $2,449.
Monitor Promotions
With the purchase of select Deskpro models, customers will now receive a Compaq V50 monitor at no additional charge. The V50 is currently the best-selling monitor in Compaq's award-winning monitor line. This unprecedented promotion allows Compaq customers to receive both the monitor and desktop with the purchase of only a qualifying Compaq Deskpro. Available through May 31, 1998(G), this promotion applies to all Deskpro 2000 models with Pentium II processors, all Deskpro 2000 SBE models, as well as to the Deskpro 4000S, and Compaq's NetPC, the Deskpro 4000N.
Monitor Price Reductions
Price reductions from 6 percent to 15 percent have been taken on select models in the Compaq monitor line, including the award-winning TFT500 Flat Panel Monitor. Prices now start as low as $269 on the Compaq V50 15-inch (13.5-inch viewable) color monitor. The price of the TFT500 15-inch Flat Panel Monitor has been reduced by 6 percent, and is now available at $2,499.
Compaq Offers Greater Value to Server and Workstation Customers
Compaq is once again raising the value bar for customers who purchase Compaq ProLiant or ProSignia Servers or Compaq Professional with the introduction of a broad-reaching trade-in program. Sponsored by Compaq Capital Corporation, Compaq's financial services subsidiary, the program will provide one-for-one credits to customers who trade in certain non-Compaq servers and workstations and acquire new Compaq servers or professional workstations. Customers will receive varied trade-in credits based on volume, type, and configuration of server or workstation traded in and type of Compaq server or workstation purchased. In addition, Compaq Capital will offer leasing options that customers may select as part of the program. For full details on this program, please call the Compaq Capital Trade-in Call Center at 1-800-211-3753.
4.9% Financing and Low-Rate Leasing
Compaq Capital is also offering a low 4.9% Financing(H) program for a limited time on all Compaq PC hardware (laptops, desktops, workstations, and servers, and configured Compaq options) and services through June 30, 1998. Eligible commercial customers simply need to order five Compaq PC hardware units or $15,000 worth of such Compaq hardware and choose either 4.9% financing or special lease rates on two- or three-year terms. For more information, please call Compaq Capital at 1-888-277-5942.
For details on the other programs and price reductions, please visit the Compaq web site at www.compaq.com/products.
Company Background
Founded in 1982, Compaq Computer Corporation, a Fortune 100 company, is a global information technology company. Compaq is the fifth largest computer company in the world and the largest global supplier of personal computers. With worldwide sales of $24.6 billion in 1997, Compaq develops and markets hardware, software, solutions and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, networking products, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.
Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products can be found at compaq.com or by calling 1-800-OK-COMPAQ. Product information and reseller locations can be obtained by calling 1-800-345-1518.
Compaq North America is headquartered in Houston, Texas. Its products and services are sold and supported through a network of more than 25,000 commercial and consumer marketing partners across the United States and Canada.
Historical financial results have been restated to reflect the pooling of Tandem.
(A) Free V50 monitor promotion is available from participating channel partners through May 31, 1998, while supplies of eligible desktops last.
(B) Dataquest, 1997. (C) See Compaq press release dated 3/2/98: Compaq Slashes Prices
Across Its Entire Line of Armada Notebook PCs
(D) See Compaq press release dated 2/13/98: Compaq Lowers Prices up to 22 Percent on Select ProSignia and ProLiant Servers
(E) See Compaq press release dated 2/9/98: Compaq Reinforces Workstation Leadership With New Models, Enhanced Promotions and Aggressive Prices
(F) All prices listed herein are U.S. estimated street prices. Reseller prices may vary.
(G) Free V50 monitor promotion is available from participating channel partners through May 31, 1998, while supplies of eligible desktops last.
Compaq, ProSignia, ProLiant, and Deskpro, Registered U.S. Patent and Trademark Office. Intel and Pentium are registered trademarks and MMX is a trademark of Intel Corporation. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. Privileged promotions are subject to change without notice. (H) Financing offered by Compaq Capital Corporation to qualified commercial customers in the U.S. (Tandem equipment is not eligible for this program). Program is based on dealer sales price and low lease rates are also available. Program may not be combined with special discounts and is subject to credit approval and execution of standard lease documentation. Program is subject to other restrictions and Compaq Capital reserves the right to change, alter or cancel this program at any time without notice.
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Contact:
Compaq Computer Corporation
Janet Dean, 281-514-0484
janet.dean@compaq.com
or
Miller/Shandwick Technologies
Erin Callanan, 281-514-0484
ecallanan@miller.shandwick.com
or
Miller/Shandwick Technologies
Kerry Kelly, 617-351-4115
kkelly@miller.shandwick.com |
