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Compaq cuts prices, again

Computers, laptops, and more are in a summer slump at Compaq.

    Price cuts are here again, says Compaq.

    Earlier this month, the company cut prices on its LTE 5000 line of notebook computers. Today, three models of desktop computers are getting a similar treatment.

    Compaq announced price cuts of up to 22 percent on the ProLinea 5100, the Deskpro 5150, and the Deskpro 5133.

    The Deskpro 5150, which features a 150-MHz Pentium processor, was priced at $2,289 but will now be priced at $2,029. The Deskpro 5133 with a 133-MHz Pentium was priced at $2,129; the new price is $1,799.

    The price cut on the ProLinea 5100 with an 100-MHz Pentium was the steepest. Its list price will drop 22 percent, from $1,849 to $1,439. All cuts are effective immediately, but only for the U.S. market.

    Desktop computers weren't the only recipients of price cuts. Compaq also announced that it was reducing the price on its QVision 210 21-inch color monitor. The .26mm dot pitch monitor will now be priced at $1,899.

    In related company news, Reuters quotes a Compaq official saying the company is expecting sales growth in Europe to slow to less than half the rate that manufacturers saw in 1995.

    Toon Bouten, Compaq's Consumer Group vice president, said in an interview that while sales grew 35 percent in 1995, that rate is likely to be closer to 15 percent this year, an amount far lower that what was being predicted by industry analysts at Dataquest.

    Bouten attributed the slowing growth to consumers in Germany who have been worried about their economy, but he expects sales to pick up again in the fourth quarter. Even though growth may be slowing, the European market is still ripe with opportunity, with computers placed in only 20 percent of households. In comparison, 35 percent of American households have computers.

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