Compaq slashes prices on computers in possible new round of PC battle

Article Abstract:

Compaq Computer Corp has cut prices by 11 to 32 percent on its microcomputers, in a move that analysts say could be the start of a renewed price war among the company and its competitors. Compaq cut the price of its low-end ProLinea microcomputer from $899 to $799, an 11 percent reduction, and also cut the price of its high-end 80486-based microcomputer to $3,999 from $5,899. The company also expects to change its pricing policies. Analysts say that the price cutting may be a result of IBM's plans to introduce a new line of inexpensive microcomputers, the PS/ValuePoint line. According to Compaq, the price cuts were made possible by high demand for its computers. In Sep 1992, Compaq shipped a record 200,000 units. Compaq's stock prices rose to $40.75 on the New York Stock Exchange Oct 19, 1992, an increase of $1.75.

Market share, Competition, Marketing Strategy, Stock

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Compaq to unveil computers and start new round of price cuts, analysts say

Article Abstract:

Compaq plans to roll out new desktop and notebook computers in mid-Mar 1993 and announce its biggest round of price cuts so far in 1993. Computer dealers and analysts briefed by the company say the new products include three Contura notebooks as well as new ProLinea and DeskPro desktops. By cutting prices on most of its present line of machines, Compaq will break a two-month lull in a price war that has raged since the summer of 1993. Analysts say the price cuts will generally be in the 10 percent to 20 percent range and will probably force rivals to respond with their own price cuts. Consultant John A. Murphy expects the prices of the microcomputers to fall 25 percent in 1993 after a 32 percent decline in 1992. Compaq is also expected to roll out its first full-blown mail-order campaign.

Product introduction, Laptop computers, Notebook computers, Notebook Computer

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