New York, Nov 8: Personal-computer makers are preparing a concerted new pushat getting customers to replace their PCs more frequently by dropping oldertechnologies and designing new machines with limited expansioncapabilities.This week, Compaq Computer Corp. and Hewlett-Packard Co. are expected tounveil new PCs that eliminate 1980s technologies such as 16-bit add-in cardsand floppy disk drives. Instead, the companies will appeal to businessbuyers with stylized designs, consumer-like $500 entry prices and powerfulprocessors. Later in the month, Dell Computer Corp. will follow the sametack with a new Internet-oriented model as part of a broader push intoconsumer PCs. For Dell, its new low-cost WebPC comes as it looks to boostits presence in the home-PC market, where it hasn't been a major factor.
Like Compaq and H-P models, Dell's new WebPC will eliminate older PCtechnologies and emphasize design with an hourglass-like shape andone-button access to Internet services. For Compaq and Hewlett-Packard, nowthe second- and fourth-largest PC sellers to US businesses, the newinitiatives are designed to kick-start stalled business PC operations.
Compaq recently lost its US market lead to Dell, and Hewlett-Packard's saleshave shifted to low-margin consumer-PCs. Each hopes to recoup losses to Dellby making their new business PCs inexpensive to make and install and easyfor customers to operate and replace. Martin Reynolds, a Dataquest/GartnerGroup Inc. analyst briefed by the companies, says at $600, thesenetwork-ready PCs will be cheaper to buy and install than it would be toupgrade existing PCs.
"This product category allows for lots of breakthroughs in the way wemanufacture and sell to customers," says Emilio Ghilardi, Hewlett-Packard'smarketing manager for its new ePC. The machines are designed to match anexpected wave of corporate PC purchases prompted by Microsoft Corp'sWindows-2000 software, he said. Compaq, which has been struggling to reverselosses on its corporate PCs, on Wednesday also is scheduled to unveil a newbusiness-oriented Internet site that draws on partnerships with CMGI Inc.,American Express Co. and others to provide products and services tocorporate customers, according to people familiar with its plans.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.