Tech Industry

Compaq makes the kindest cuts

Compaq cuts prices for all its major product lines, including desktop PCs, notebook PCs, servers, workstations, and networking products.

Compaq (CPQ) has announced aggressive price cuts for all its major product lines, including desktop PCs, notebook PCs, servers, workstations, and networking products.

The action includes price reductions of up to 17 percent on Compaq Deskpro PCs, 27 percent on select Compaq Armada 4100 and LTE 5000 notebook PCs, and up to 20 percent on ProSignia 300 and ProLiant 5000 servers.

Although it's the No. 1 PC vendor, Compaq is still working to build marketshare in an effort to become one of the top three systems vendors. In reevaluating its prices to strengthen its competitive position, the company is also passing on to consumers the savings from reduced Pentium prices, which were cut last week, as reported by CNET.

Compaq lowered prices from 6 to 17 percent on all Deskpro 2000, Deskpro 4000, and Deskpro 6000 models. The Deskpro 2000 family, a line of entry-level business PCs, now start at $1,150, a drop of 16 percent, and carry a Pentium 133-MHz processor and 1.2GB hard drive, according to Compaq.

Deskpro 4000 models, built for networking environments, were reduced in price from 6 to 16 percent. The Deskpro 4000 models now start at $1,290, or 15 percent less, with a 133-MHz Pentium processor and a 1GB hard disk drive.

The Deskpro 6000 line, which offers more sophisticated high-performance features, was reduced in price from 7 to 14 percent. Deskpro 6000 models now begin at $1,980, falling 14 percent, with a 166-MHz Pentium processor, a 1GB hard disk drive, and 16MB of memory.

In its line of notebook PCs, Compaq cut prices on the Armada 4110, based on a 100-MHz Pentium processor, from $2,199 to $1,599, falling 27 percent. The Armada 4110D plunged 27 percent from $2,499 to $1,899, while the LTE 5380, which uses a 133-MHz processor and 12.1-inch display dropped in price from $5,499 to $4,999, a decrease of 9 percent.

In addition to the price reductions, Compaq extended its Armada 1100 product line promotion for a SpeedPaq 288 Data/Fax Modem at no additional cost through February 28. The Armada 1130 and 1130T models were also added to the promotion. In addition, through March 31, customers who purchase the Compaq Armada 4120 notebook will receive an additional lithium ion battery at no extra cost, the company said.

Compaq, the world's largest server vendor, also continued its drive to reduce server prices. ProLiant 5000 6/200 models, based on the Pentium Pro processor, were reduced in price from 4 to 11 percent and now start at $13,920. ProLiant 5000 6/166 models were reduced in price from 7 to 10 percent and now start at $10,970. Pentium-based ProSignia 300 models were reduced in price from 9 to 20 percent and now start at $1,330.

The company announced a processor promotion for the ProLiant 5000 Model 6/166, a system capable of supporting four Pentium Pro processors. The promotion provides customers who purchase a single processor system with a second processor at no additional cost. In addition, customers who purchase just the processor option kit will receive a second processor at no additional cost. The offer is available through April 30 and will be handled by resellers, Compaq said.

In the company's workstation line, two promotional programs were introduced for its Professional Workstation 5000 line. Through April 30, Compaq is providing a $400 rebate to its reseller partners on select workstation configurations. As a result, the estimated street price of its entry-level Compaq Professional Workstation configuration is expected to be around $3,900. Separately, Compaq is doubling the system memory on one of its high-end 3D graphics workstation models. The programs will run through April 30.

Also, in its networking product lines, Compaq lowered prices on its line of Netelligent network interface controllers by up to 13 percent. For example, the Netelligent 10/100TX PCI UTP NIC is now priced at $139, or about 12 percent less.