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HP to cut desktop prices by 20 percent

Desktop systems will fall to as low as $699, as the company matches earlier cuts by Compaq.

Hewlett-Packard will cut prices on desktop, notebook, and workstation computers by as much as 20 percent on Monday, matching this week's price drops by rival Compaq Computer.

The reductions stem from falling component costs, according to an HP spokesperson. The price cuts cover HP's Vectra line of corporate PCs, the Brio line for small business, Kayak workstations, and OmniBook portables.

Among the cuts, the HP Vectra VE corporate PC with Intel's 333-MHz Celeron processor, a 4.3GB hard disk drive, and 32MB of memory will drop to $774, a 20 percent discount.

An HP Brio business desktop with a 333-MHz Celeron, a 4.3GB hard drive, and 32MB of memory will sell for an estimated street price of $699, a drop of nearly 15 percent.

On Tuesday, Compaq introduced similar discounts on its Prosignia line of small business computers.