Compaq starts new home PC price war

By Richard Morochove

First published July 3, 1997

There's nothing like a good old-fashioned price war to rouse the computer market from the summer doldrums. Last Monday Compaq Canada launched eight new computers, including two notebooks, its biggest barrage of home PCs since 1994.

Compaq's price-buster is the Presario 2200, aimed squarely at the first-time computer buyer on a budget. It carries a list price of $1,758, but I expect it will be heavily discounted, so you'll be able to buy a complete system, including monitor, for $1,600 or less.

Compaq Presario 2200

Furthermore, the 2200 is no bare-bones model. It's based on a 180 MHz. Cyrix MediaGX processor, which is roughly comparable in performance to an Intel Pentium processor running at the same 180 MHz. clock rate. The 2200 includes 16 megabytes of memory, a 1.6 gigabyte hard drive, 8X CD-ROM and 33.6 Kbps / 14.4 Kbps data/fax modem. The modem is ungradeable to the faster K56flex technology.

The 2200 is a sleek black model, with stereo multimedia speakers built-in into the front corners of the base. Compaq has designed the unit's speaker enclosure to feature a phantom sub-woofer for extra bass response.

The system comes with MS Windows 95 and a dozen pre-loaded applications, mainly from Microsoft, including Money 97, Works, Bookshelf, Encarta and Internet Explorer.

The biggest drawback of the Presario 2200 is its lack of expandability. There are no available option board slots, so what you see is what you get. You won't be able to add any internal options, with the sole exception of RAM, which can be expanded to 80 MB.

Why pick this summer to start a home computer price war? Compaq sees an opportunity to gain market share at the expense of two troubled rivals. Money-losing AST Computer was recently fully acquired by South Korea's Samsung Group and has been slow to introduce new models. Packard-Bell NEC has angered some computer dealers with a recently-announced plan to bypass them and sell some PCs directly to end-users.

If you require the upgradeability lacking in the 2200, the Compaq mid-line Presario 4500 series of minitowers offers two open expansion board slots and one available drive bay in the 4508 and 4528 models.

The base model 4504 lists for $1,639 (excluding monitor) and is based on a 200 MHz. Pentium processor. Its other specs are similar to the 2200, with the exception of a larger 2.1 gigabyte hard drive and a faster 16X Max CD-ROM.

The bigger brother 4508 has a more powerful 200 MHz. MMX Pentium and 24 MB of memory. The 4528 features a 233 MHz. MMX Pentium, tops up memory to 32 MB and features a larger 3.2 gig hard drive and faster 24x Max CD, all for a list price $2,832, without monitor.

Compaq's top-of-the-line Presario 4800 series is aimed at second time computer buyers who want to upgrade to a machine that has it all. This line features MPEG-2 for razor sharp video playback and home theatre audio including JBL Pro speakers with 3-D audio and Dolby Digital Surround Sound.

According to Compaq's research, 75 per cent of camcorder owners also have a home computer, so it includes what it calls a Creativity Imaging Center with the 4800 series. You can plug in your camcorder or VCR, capture video clips on your hard drive and edit them with the bundled Intel Video Capture software. You can place video phone calls to others who have compatible software. A digital photo editor, iPhoto Express, is also included.

There are many more features including a complete speakerphone and telephone answering system and backlit buttons that offer easy access to common functions, such as a one-button connection to the Internet.

The 4800 models are full-size towers with plenty of expansion room. Both come with 32 MB of RAM, a large 6.5 gigabyte hard drive, 24X Max CD-ROM and 56Kflex modem. The model 4814 (list price $3,625) is based on a 233 MHz. MMX Pentium, while the 4824 (list price $4,305) is Compaq's first home PC with the recently released 233 MHz. Pentium II processor. In September, Compaq will ship the model 4834 with a 2X DVD (Digital Video Drive).

Finally, Compaq introduced two multimedia notebooks, with an interesting twist that could make them the world's most expensive boom boxes.

The CD control buttons are located outside the unit, just behind the lid. You needn't boot-up the computer to play a CD. The stereo speakers are designed so you can play back audio CDs with the notebook lid closed, up to 8 hours of music on a single battery charge. If you take one along to the beach, don't kick sand into the keyboard.

The Presario 1210 notebook (list price $3,399) is based on a 150 MHz. Pentium, while the model 1610 (list price $4,759) is based on a 150 MHz. MMX Pentium. Both have a 12.1-inch passive matrix colour display, 14X CD-ROM, 16 MB of RAM and weigh about 7.3 lbs. The more expensive model features a larger 1.6 gigabyte hard drive, a faster 56Kflex data/fax modem and an enhanced 4X Bass Reflex audio system.

All the new Presarios, with the exception of the model 4834, should start trickling into retailers in late July, with general availability by August. The systems come with a one-year parts and labor warranty. After carping from yours truly and many purchasers, Compaq dropped its $35 per phone call support charge. The company now answers your questions about all software pre-loaded on the computers at no additional cost during the warranty period. CW