Compaq to show new lines; price war could heat up

Article Abstract:

Compaq announces new microcomputers with more features and lower prices, in a move that is certain to set off another price war. Compaq, IBM and Dell Computer have been sacrificing profit for market share, with their stock prices dropping in response: Compaq's share price dropped 50 cents to $44.50 on Mar 4, 1993, the day before the announcement. The company reported a $213 million profit for 1992, but the latest lines are expected to reduce profit by a further 15 percent. Many of the new products feature new advanced matrix color graphics, and are based on Intel 80486 processors, replacing the 80386 processors in notebooks. Thirty-three desktop models are being released, ranging in price from under $2,000 to $3,600. A $1,700 multimedia Prolinea computer will also be shipped. The Deskpro desktop machines are gaining improved network connectivity features and new 486 66 MHz processors.

CPQ, Profits, New Product, Marketing Strategy, Profit

---

For PC giants, low prices may cost a lot

Article Abstract:

Both Dell Computer Corp and Compaq Computer Corp are doing well in terms of sales and profits, but both companies' shares are losing value. Since Jan 27, 1993, Dell's shares have fallen from $49.875 to $35, which was the price on Feb 12. Compaq's shares declined from $58.50 on Jan 26 to $47.375. The most significant factor at work in this situation involves pricing policies. Companies continue to cut their prices in an attempt to gain market share. Industry analyst Antoine Tristani, with Southcoast Capital Corp, says Dell and Compaq should do well in an industry consolidation because they have the most cost-competitive products. Even so, an industry shakeout can be dangerous, especially if demand diminishes.

Dell Inc., Industry Analysis, Outlook, Market Analysis, Competition, Economics of Computing, Pricing Policy

---

Similar abstracts:

• Abstracts: TV via telephone lines planned for Manhattan. Making sense of telephone services. Facing the incredible: 1 (800) N-O-T-H-I-N-G (AT&T unable to connect 800 number calls)
• Abstracts: Compaq to discuss Silicon link. New venture for Compaq called near. Compaq Computer outlines new lower-cost approach
• Abstracts: Is Borland using a two-edged sword in battling for sales?; its price-cutting on Quattro Pro is likely to slash future profits
• Abstracts: Whither the ACE consortium? Maybe nowhere. A wireless widget master
• Abstracts: Another way to work at a desk. Automobile mechanics with no sweat or tears

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.