Cash, cache, cachet: All 3 seem to matter when you buy a PC; but features are confusing, sometimes deliberately so, to make compromises hard

Article Abstract:

Computer manufacturers and retailers apparently are adding numerous features to their PCs to differentiate them from the vast majority of offerings that operate on Intel microprocessors and Microsoft operating software. By contrast, many of the computers available for the 1998 holiday season have shown unprecedented improvement in speed, cost and user-friendliness. The new strategy is confusing shoppers, may of whom cannot distinguish newer options such as modems and cache size. Another industry sales tactic consists of customizing a user's needs, which makes it more difficult for consumers to compare products from other stores. Customers also can experience frustration when dealing with computer stores' sales staff. Some representatives may recommend a product to receive compensation from manufacturers, while other temporary seasonal helpers may lack the basic knowledge to help novices.

United States, Electronic Computer Manufacturing, Analog & Hybrid Computers, Marketing procedures, Computer Stores, Computer and Software Stores, Computer and Computer Peripheral Equipment and Software Wholesalers, Computers, peripherals & software, Computers Wholesale, Microcomputer industry, Retail industry, Retail trade, Forecasts and trends, Industry trend, Wholesale industry, Wholesale trade, Computer wholesalers, Retail/reseller channel, Wholesale dealer/distributor

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Compaq to cut its work force by about 1,000; firm seeks cost reductions despite record sales; PC price war is cited

Article Abstract:

Compaq Computer Corp is dismissing 1,000 of its workers, or 10 percent of its total labor force, to improve the company's competitiveness, despite strong revenue and sales in the 3rd qtr, FY 1992. The company's 3rd qtr earnings are expected to be well above its 2nd qtr earnings of $29.9 million, the equivalent of 35 cents per share. Compaq reported its first loss in the 3rd qtr, FY 1991, a $70.2 million loss, the equivalent of 82 cents per share. That period also marked the company's first layoffs. The company expects to lay off 700 employees in Oct, 1992. Compaq said the results for 3rd qtr, FY 1992, will contain an $85 million pretax charge because of its restructuring and debt retirement, but that the charge will be balanced by $86 million in pretax gain because of the company's sale of its equity interest in Connor Peripherals.

Human resource management, Compaq Computer Corp., CPQ, Business planning, Layoffs, Layoff, Cost control, Competition, Cost Reduction, Third Quarter, Financial Report

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Growth of home-PC market is impeded by confusing array of products, prices

Article Abstract:

Industry observers say that the recession has combined with consumer indecision to slow sales of microcomputers. Consumers are said to be confused by the number of products available and the variety of stores that market them. According to market researcher Link Resources Corp, 3.8 million microcomputers were sold for home use in 1991, which is down from four million in 1990. Link believes that about four million of the machines will be sold in 1992. Both IBM and Tandy Corp introduced easy-to-use machines for the home market, but their prices were too high. Market observers say, for example, that IBM's PS/1 home computers ended by costing as much as powerful IBM clones designed for business uses. Consumers, they say, bought the clones. Thus, IBM's position in the home market was flanked.

Growth (Physiology), Sales, Purchases, Growth, Recession, Microcomputer, Hardware Selection, Market Analysis, Economics of Computing, Retail/Reseller Channel, Home Computer Market

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