Tech Industry

HP trims desktop prices

HP lowers its Vectra line of business PCs by up to 10 percent, in an effort to gain ground in the race for market share in low-cost desktop PCs.

Hewlett-Packard (HWP) trimmed prices on its Vectra line of business PCs by up to 10 percent, in an effort to gain ground in the race for market share in low-cost desktop PCs.

The price cuts mean that a Vectra VL with 233-MHz Pentium MMX chip, 32MB of memory, and a 2.5GB hard disk drive will cost $1,037, making the system $50 lower than a comparable system from acknowledged low-cost leader Compaq, according to HP.

HP also trimmed prices for Pentium II-based systems, with a 233-MHz

Vectra VL desktop PC price cuts
Processor New
price*
%
cut
233-MHz Pentium II $1,307 8
233-MHz Pentium II** $1,647 10
266-MHz Pentium II $1,567 9
300-MHz Pentium II $1,844 4
*estimated street prices
**ships with 24X CD-ROM
Pentium II Vectra VL with a 24X CD-ROM now priced at $1,647. That represents a 10 percent reduction from its previous price of $1,817. A Vectra VL with 266-MHz Pentium II was priced at $1,728 and is now priced at $1,567, a reduction of 9 percent.

The price cuts follow on the heels of research from Dataquest that places HP as the fourth largest PC vendor in the world, with 5.4 percent market share in 1997. But HP has a way to go before catching up with Compaq in terms of market share--the Houston manufacturer commands 12.4 percent of the worldwide PC market.

In addition to the price cuts, HP introduced two new Vectra VE models. A model with 200-MHz Pentium MMX, 32MB of memory, and a 3.2GB hard disk drive will have an estimated street price of $1,173. A model with the 233-MHz Pentium MMX will have an estimated street price of $1,289.

Both the Vectra VE and VL systems will ship with the Windows NT operating system. HP also cut prices on various accessories, including a 19-inch monitor that dropped by eight percent to $886.