Compaq can't cope with demand for ProLinea PCs

Article Abstract:

Compaq's ProLinea low-cost microcomputers are selling faster than the company could manufacture them, thereby creating a shortage that has made customers angry as they wait for orders to be filled. The ProLinea line is intended to regain the loyalty of budget-conscious consumers, a market Compaq lost when it failed to respond swiftly to the price cutting strategy of other microcomputer companies. In 1991, Compaq experienced its first layoffs and first quarterly loss. The ProLinea marketing strategy hinges upon the quick manufacture of the low-cost machines. The shortage, which company officials attribute to their misreading of the market, is expected to be temporary. Compaq has increased the manufacturing shifts in its Houston, TX, and Singapore plants to two; one shift is based in Glasgow, Scotland. The company has also hastened the manufacture of disk drives, power supplies and flat-panel displays.

Supply and demand, Demand, Low Cost, Supply, Computer Manufacture, Compaq ProLinea (Intel-compatible system)

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Compaq Computer's mail-order sales loom as talks with resellers resume

Article Abstract:

Compaq negotiates with six national computer resellers to make its microcomputers available via direct mail. Compaq is attempting to expand its share of the low-priced microcomputer market. The company had been previously engaged in negotiations to sell its ProLinea line of microcomputers via mail order, but had to suspend talks when it could not meet market demand for the low-priced microcomputers. Availability problems have eased and Compaq is again focused on the mail order market. USA Flex prematurely leaked information about Compaq's direct mail intentions in an advertisement, which Compaq disavowed. USA Flex maintains that it had a deal with Compaq, but that Compaq backed out of it after the advertisement deadline had passed. Industry observers note that direct mail is a competitive and risky market. Price wars break out frequently.

Negotiations, Negotiation, Mail Order, Marketing Agreements

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This time, PC makers vow, home models will be easy and useful as well as cheap

Article Abstract:

Leading microcomputer makers are gearing up once more for one of their periodic attempts to crack the home market. Compaq's new Presario line of plug-and-play computers come with a fax modem, built-in telephone answering machine and built-in applications such as word processors, games, finance programs and communications software for access to online bulletin boards. Dell Computer Corp and AST Research Inc are both focusing more on what Dell calls 'techno-phobes,' while IBM plans to roll out 27 new microcomputers. These efforts could hurt home-computing pioneers such as Apple and Packard-Bell Electronics Inc. Skeptical analysts say IBM-compatible computers are still too difficult to use, especially when compared to such home-electronics standbys as TVs and VCRs. Seventy percent of US households do not have a microcomputer.

Computer peripheral equipment, not elsewhere classified, Market Penetration, Home Computer Market, Compaq Presario (Intel-compatible system)

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