To: Tony Viola who wrote (69893 ) 12/16/1998 12:03:00 AM From: Paul Engel Respond to of 186894
Tony & Intel Investors - Strong Sales of Compaq's Intel-based ProSignia BTO PCs. I guess the Dell model seems to work for Compaq and Dell - the both are using Intel CPUs exclusively for the BTO programs. "Sales of the Prosignia products have been almost three times stronger than the company anticipated, Compaq said. About half the buyers are coming directly to Compaq and half continue to go through the so-called channel. With today's pricing action, the 350-MHz Pentium II Prosignia 330 falls to $1,629 from $1,749. Four of the five Prosignia models sold by Compaq were more expensive than Dell's comparable systems before the price cuts." Paul {====================================}news.com Compaq trims Prosignia prices By Bloomberg News Special to CNET News.com December 15, 1998, 5:45 p.m. PT Compaq Computer cut prices on PCs it sells directly to users by 2 to 7 percent in an effort to woo customers from rival Dell Computer. Compaq trimmed prices on five Prosignia desktops just weeks after introducing the line in November. The Houston, Texas-based PC maker sells the small-business machines through its usual network of distributors as well as directly to users, a model that No. 1 direct seller Dell has used with enormous success. A Compaq spokesman attributed the cuts to savings on component costs. Along with other PC makers, Compaq, the world's leading PC manufacturer, has been shifting to a direct sales model because it removes the middleman and helps with demand forecasting and inventory, thus cutting costs. PC makers have had trouble switching, though, because they have traditionally relied on distributors to bundle hardware, software, and service and don't want to damage that relationship by creating competition. Compaq's efforts to counter Dell's strength in the corporate market, especially among small and medium-sized businesses, also owe to its decreasing market share. Sales of the Prosignia products have been almost three times stronger than the company anticipated, Compaq said. About half the buyers are coming directly to Compaq and half continue to go through the so-called channel. With today's pricing action, the 350-MHz Pentium II Prosignia 330 falls to $1,629 from $1,749. Four of the five Prosignia models sold by Compaq were more expensive than Dell's comparable systems before the price cuts. Each system includes a 17-inch monitor. Copyright 1998, Bloomberg L.P. All Rights Reserved.