Compaq cuts its PC prices in effort to widen its lead
Article Abstract:
Compaq lowers prices as much as 25% to retain its position as the premier personal computer seller. Computer prices typically fall in late summer as fall models become available, but Compaq's announcement underscores the intense competition in the PC industry. Compaq faces challenges from companies employing the same tactics it employed to become number one. HP poses the most threat, since it became the sixth-largest PC seller. Packard Bell also poses a challenge since it became the leader in sales of home computers. Even as prices drop, the pressure to add more features increases.Packard Bell will add telephone and multimedia capabilities to its fall 1995 models. Compaq will offer commercial computers with more storage and personal computers with Pentium chips. A computer with a 75MHz Pentium CPU, 8MB of memory and 630MB of storage now costs $1,599, the lowest price for the configuration.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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Technology issues follow Compaq's fall; some fear bull market for the sector is ending
Article Abstract:
The stock value of many high technology industry companies fell on Mar 1, 1996 after Compaq Computer Corp announced lower-than-expected 1st qtr 1996 earnings. Compaq expects slow holidays sales in the consumer market and slow February sales in the corporate market to reduce earnings from typical levels of 98 cents a share to about 80 cents per share for the quarter ending Mar 31, 1996. The announcement prompted Compaq stock to fall 17.5%, to $41.75 per share, a loss of $8.875 per share. Other companies affected by the downturn included Microsoft, down $3.1875; Intel, down $2.75; Dell, down $4.375 and IBM, down $4.50. Some analysts see Compaq's troubles as evidence of a general slow down in the high technology sector. Others believe that competition from HP is to blame. HP's stock also dropped $5.625 to close at $95.125.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Hewlett plans to cut prices on computers; pre-empts disclosure scheduled by Compaq
Article Abstract:
HP has announced it will immediately cut the prices of its commercial desktop computers in an effort to pre-empt Compaq's plans to do lower its prices soon. IBM is also expected to match HP's price cuts. The three large computer companies are cutting back prices as a result of the pressure they are feeling from Dell Computer. Dell's growth rate has been at a significantly faster rate than the larger companies. Compaq has been reworking its agreements with thousands of its independent dealers in order to reduce the amount of machines that the dealers typically keep in storage. Compaq is expect to use the money it will save to offer a new desktop business computer line that will be priced competitively with Dell's.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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