Compaq Computer Corp. has unveiled budget-priced personal computers - some under $900 - intended to compete head-to-head with companies that sell inexpensive "clones" of IBM-type PCs.
Compaq, which has a facility in Orem, called the 16 new models and three new product families "a bold new direction for the company."Compaq traditionally has sold high-priced copies of IBM PCs to major corporations. Its move into the low-priced market is a startling departure. It now will compete with such mail-order PC firms as Dell Computer Corp., where price is the major consideration of buyers, not service or product features.
Compaq also will face competition from International Business Machines Corp. itself, which slashed the prices on some of its PCs in recent weeks and indicated it is looking at ways to sell even cheaper models. IBM is the world's largest PC maker.
"Compaq is reaffirming its leadership in a new generation of personal computing," Eckhard Pfeiffer, Compaq's president and chief executive officer, said in a statement.
"This is evidence of a more competitive and aggressive Compaq - a company committed to meeting the pricing demands and computing requirements of a broad range of users, while maintaining our hallmark of innovation, quality and reliability."
The new ProLinea desktops start at less than $900, while the Contura line starts at around $1,700. A third new line, the Deskpro-1 family of upgradable desktop computers, starts at less than $1,800.
Compaq also unveiled its first color notebook, the Compaq LTE Lite-25c, starting at under $5,000 and featuring a new integrated trackball; and the new "Windows Edition" models of the Deskpro-M family.
In addition, the company reduced by as much as 32 percent suggested list prices on some of its desktop and notebook computers, including all models of the Deskpro-M family and LTE Lite notebook family.
Pfeiffer replaced Compaq co-founder and longtime chief executive Rod Canion.