Compaq cuts prices after policy rethink

Computer manufacturer Compaq is slashing prices by half on some business computers and by up to 30 per cent on its consumer models during the run-up to the cut-throat Christmas period.

The move is a reversal of policy for Compaq, which has been running an ad campaign based on the quality of its machines, stressing that in the long run cheaper computers cost more in servicing charges.

Selected PCs, notebooks and servers will cost less. The cuts apply to most of Compaq’s Pentium and Pentium Pro Deskpro models.

The entry-level Pentium 120 Deskpro 5120 will be cut from 1,420 to 1,010. The Pentium 100 LTE 5150 notebook has also come down, from 2,875 to 2,095. The price reductions will last until December 31.

Martin New, IT analyst at research group GfK, says that 42 per cent of home PC sales come between December and January.

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