Shifting fortunes: PC firms are roiled by change as clones gain on brand names; lack for innovation makes it hard for a Compaq or IBM to justify higher prices; workstations cut into sales

Article Abstract:

The traditional computer industry market leaders in sales - IBM, Compaq and others - are losing sales to the clone makers, such as AST Research Inc and Dell Computer Inc. This change affects both the microcomputer and higher-end workstation markets, which means that Sun Microsystems Inc is also doing better than the more established manufacturers. Customer satisfaction surveys often rate the clones higher in performance than IBM's or Compaq's products. The near-standardization of microcomputers and the lack of innovation by the big companies means they have trouble justifying their higher prices, to either businesses or individuals. Budgetary caution on the part of large corporations hit IBM and Compaq especially hard, because they are a main part of the computer firms' customer base and because such companies are either restricting purchases or buying cheaper systems. Both companies as well as Apple Computer Inc are reducing prices to attract a bigger share of the still growing microcomputer market, but analysts doubt the overall effect.

Microcomputers, Statistics, Sales, Microcomputer, Market Analysis, Sales Analysis

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Conner to pay $241 million to buy back 20% stake held by Compaq Computer

Article Abstract:

Conner Peripherals Inc is paying $241 million to buy back Compaq Computer Corp's 20 percent equity stake in Conner. Conner supplies Compaq with hard disk drives and is Compaq's largest supplier. The new arrangement does not reflect any tension between the two companies. Conner is purchasing Compaq's 11.6 million shares of Conner common stock for $20.75 each. Compaq originally bought the stock in 1986 before Conner traded publicly for $12 million. Conner's shares went up 12.5 cents to $20.875, while Compaq's shares went up 62.5 cents to $29.375. Compaq has begun to purchase equipment from Conner's competitors, but Conner will remain the largest supplier to Compaq.

Computer storage devices, Finance, Compaq Computer Corp., CPQ, Investments, Business planning, Computer storage device industry, Financial Analysis Software, Stock, Conner Peripherals Inc., CNR

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Hewlett, Motorola will sell workstations through dealers who target businesses

Article Abstract:

HP and Motorola Inc will sell their workstations through computer retailers that target businesses as their main customers. Industry observers note the move represents a strategy on the part of the computer industry to introduce workstations into the market in a big way, competing with the broad, installed base of microcomputers. Both companies plan to sell their machines through MicroAge Inc and HP also plans to sell its machines through Intelligent Electronics. Analysts agree that wide scale distribution is a critical part of making workstations as ubiquitous as microcomputers.

Computers, peripherals & software, Marketing, Contracts, Hewlett-Packard Co., HWP, Motorola Inc., MOT, Distribution, Distribution channels, Strategic Planning, Distribution Management, Marketing Strategy, Retail/Reseller Channel, MicroAge Inc., Intelligent Electronics Inc.

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