Compaq Cuts Prices on Notebook Computers
HOUSTON (AP) _ In its third product price reduction this year, Compaq Computer Corp. cut suggested retail prices on its notebook-sized personal computers by up to 22 percent.
The company’s highest priced notebook computer dropped Monday from $2,799 to $2,249; the mid-level model, from $2,499 to $1,949; and the lower priced model, from $1,999 to $1,749.
Houston-based Compaq announced in April price reductions of about 34 percent across-the-board. Earlier this year, it also cut prices on some of its desktop computers.
″We’re trying to keep the margin between us and our competitors to a minimum,″ spokeswoman Debra Globe said. ″It’s a whole new strategy.″
Ms. Globe said Compaq decided to reduce prices because competitors had been discounting their prices and ″to reposition ourselves in the minds of users.″
The personal computer industry has seen a number of price reductions this year as sales have slowed due to the recession and because competition from low-cost Asian manufacturers has increased.