Hewlett-Packard cuts office-PC prices in wake of moves by Compaq and IBM
Article Abstract:
HP aggressively cut prices for its corporate PC product lines by as much as 18% in response to market leader Compaq's recent price cuts. Compaq's preemptive price cuts dropped its prices for corporate PCs by 13% to 25% in a bid to undercut rivals HP and IBM. IBM responded by cutting its prices by up to 26%. HP's aggressive move is part of the company's strategy to continue its rapid market share growth. HP's world-wide PC shipments have grown by 55% in the 2nd qtr 1995. The growth came mostly at the expense of smaller PC manufacturers. HP's large cuts signal that it is taking a proactive, rather than defensive pricing stance. HP's corporate PC prices are now below both Compaq and IBM in all but one product line. The HP Vectra XU high-end 90MHz Pentium-based system with a 1GB hard drive is now $3,339 from $3,878, compared to Compaq's Deskpro XL priced at $3,369. Decreasing component prices have allowed PC manufacturers to reduce prices without hurting margins.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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Apple trims more PC prices in the U.S
Article Abstract:
Apple has cut prices in the US by up to 1/3 on many of its most popular microcomputers. Apple intends the move to increase its market share. Price wars have forced Apple to lower prices, since Apple's computers traditionally commanded higher prices. Apple also recently cut prices on its midrange microcomputers. Analysts say the lower prices may not offset reduced profit margins, and Apple may have to cut costs further than it already has. Apple recently announced it would cut its work force by 16 percent, freeze some salaries, and reduce some executives' salaries. Apple faces strong competition from IBM PC-compatible microcomputers because they look and function more like Apple computers than ever before. Apple is also focused on the consumer and small-business markets, while IBM compatibles are standard for big businesses.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Compaq and Acer are slashing prices on entry-level PCs to expand market
Article Abstract:
Compaq and Acer Inc plan to offer full-function Pentium-based multimedia-ready PCs in the $1,500 price range in 1996, reversing the longstanding pattern of building more features into entry level machines rather than reducing prices. An estimated 50% penetration of PCs into households with incomes above $50,000 may have prompted the companies' new focus on lower-income consumers, which is not shared by other PC manufacturers. Packard Bell Electronics has been the price leader in the home PC market but does not plan similar price reductions, which could endanger its market share in light of Compaq's superior brand name prestige.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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