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Compaq cuts workstation prices

Compaq slashes prices on its workstation lineup, the second round of price cuts on a major product line in one week.

For the second time in a week,Compaq Computer (CPQ) has slashed prices on a major product line.

The computer maker today cut price tags on its Professional Workstation line by up to 29 percent.

The 2D graphics, multiprocessor-capable Professional Workstation 5100 line will now have a starting price as low as $2,669, Compaq says. The reduced prices are coupled with a $1,600 rebate on Professional Workstation 5000 units with a 3D Elsa Gloria-L graphics card, which brings the starting price for the workstations down to $3,859--closer to what customers normally pay for 2D graphics workstations, the company said.

Compaq also reduced prices on its Professional Workstation 6000 line. The Pentium II-based minitower workstations now start at $3,599.

The announcement follows the company's decision to cut prices on its Deskpro business PCs and its Armada notebook line last week.

Today's price reductions also come on the heels of the introduction of the new Professional Workstation 5100 model, which offers up to two 266- or 300-MHz Pentium II processors, up to 512MB of ECC memory, Compaq's parallel system architecture, a 10/100TX autosensing network interface card, and a 24X CD-ROM, priced from $3,499, Compaq said.

The company said it made the recent price cuts as part of its continuing push into the Microsoft Windows NT workstation marketplace.

In related news, Compaq today debuted the Compaq SpeedPaq Cellular PC Card, a cellular radio transceiver that enables Armada notebook users to easily access information offline. In conjunction with the release, Compaq also said it has joined with AT&T, MicroAge, and Wireless Telecom, to expand the application of Microsoft Exchange to the wireless communications marketplace for Armada notebook users.