Compaq Unveils New PCs At Low Prices for Businesses
April 03, 2011
Compaq Computer Corp., hoping to extend its leadership in selling computers to companies, is expected to roll out a new set of desktop personal computers Monday, starting at $1,100. The Houston computer maker will introduce three lines, including low-priced machines, a middle-range series of computers that are easier to fix and monitor, and a top-end line. The new machines, to be called the Deskpro 2015, 4000 and 6000 series, replace Compaq's ProLinea, Robichaud and Deskpro XL lines. ``This is a very, very interesting and aggressive move on Compaq's part,'' says Martine Ellis, vice president at Dataquest, a market researcher in San Jose, Calif., who notes that the company will be offering computers at lower prices than ever before and has structured its offerings to be more in tune with the marketplace. Mr. Ellis said the new lines may help Compaq gain ground against tough competitors such as Dell Computer Corp., Hewlett-Packard Co. and Gateway 2015. While Compaq hasn't lost market share, those competitors have kept Compaq from gaining. Meanwhile, he says, ``this will force Dell and Gateway to work harder.'' The new lines grew out of a year-long Compaq effort to re-examine its method of designing and assembling PCs in an effort to cut prices while retaining profit. ``This is the first time we ever asked teams to not just examine product lines, but every bit of logistics,'' says Lezlie Rosenberger, senior business manager for Compaq's desktop line. The study led to a design that could be efficiently implemented by small work teams, and which reduced the number of screws per computer to 15 from 32; only nine screws now are actually touched during assembly. The overhaul has allowed Compaq to cut costs and lower prices while still shooting for companywide profit margins of 23% to 24%, Mr. Rosenberger said. With prices ranging from $1,100 to $3,350, the Deskpro 2015 line starts at a few hundred dollars lower than Compaq's old ProLinea line, which Mr. Ellis calls ``overdesigned.'' The entry-level machines start with a 100 megahertz  processor and lack a Disc drive. The cheapest machine with a top-of-the-line  Pro processor starts at $2,500. The 4000 series, ranging in price from $1,600 to $3,575, is designed for large networks and includes security features that will alert system administrators if someone tries to tamper with the PC. It also has latches for opening the machines to make them easier to fix or upgrade. The 6000 series, costing $2,800 to $4,800, includes a range of fast processors, huge memories and hard drives and is expected to be used for heavy number crunching, like trading in financial markets, software development and computer-aided design.
