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Summer brings computer price fall

By Richard Morochove

First published June 17, 1999

There's a nip in the air. The leaves are turning colour. It must be Fall. No, you haven't stepped into a time warp. Summer hasn't officially arrived by the calendar, but fast-moving PC makers are now launching their Fall line-ups of home computer models.

In the past ten days, three leaders in home computers, Compaq, IBM and Hewlett-Packard, have all announced new machines aimed at consumers. Although I wouldn't want to skip past summer like these computer makers, I do appreciate the fall in computer prices reflected in the new models. Computer buyers will receive more for much less than before.

Take a look at Compaq Canada's top-of-the-line Presario. With an estimated selling price of $2,499, Compaq slashed over a thousand bucks off the model it replaces. Yet the new Presario 5717 is no slouch in the performance department, based on Intel's powerful Pentium III processor running at 450 MHz with 96 MB of RAM, 19 gigabyte hard drive, 6X DVD and 100 MB Zip drive.

It's the first home PC I've seen with built-in dual analog/digital modems. You can go online with either a standard 56 Kbps or a 1.5 Mbps Max DSL modem. If you like the faster digital option, check with your local phone company to ensure DSL service is available in your area and that it can be accessed using the Compaq modem.

The Presario 5717 also features what Compaq calls a Digital Creativity Imaging Centre. There's an IEEE-1394 high-speed connector that can be used with digital camcorders to edit your movies. The computer comes with Videogram Creator and Video Wave II software to enhance your flicks.

The imaging centre also includes 2 USB (Universal Serial Bus) ports for hooking up somewhat slower devices such as digital still cameras. There are another 2 USB ports at the rear of the PC for connecting to a printer or scanner.

You'll find no fewer than seven quick Internet access buttons on the keyboard. For example, a push of one button will connect you to the Altavista.com site (now owned by Compaq) for quick web searches. Another button connects you to a site with online help and upgrade information for Compaq products.

Purchasers may also take advantage of a free trial from Compaq.NET which offers unlimited access to the Internet for $24.95/month.

The Presario 5300 series is Compaq's economy home desktop line, with prices starting at $1,138. This series is based on the AMD (Advanced Micro Devices) K6-2 processor (380 or 450 MHz.). These PCs come with 64 MB of RAM and a 4.3 gigabyte or larger hard drive.

What do you give up for the lower prices? Aside from the slower processor, less RAM and hard drive capacity, you don't get the IEEE-1394 connector and DSL modem that comes with the 5717.

Still, the 5300 family should be a top-seller as it fits right into what Compaq Canada's Consumer Market Manager Sid Oziel sees as the "sweet spot" of the home PC market: computers that sell for $2,000 or less. According to Oziel, an increasing number of home computers are being purchased by small- and medium-sized businesses who appreciate the power of the higher-end models, along with the bundled software.

Compaq is also launching three new consumer notebooks, ranging in estimated selling price from $2,499 (for the Presario 1275) to $3,599 (for the Presario 1690).

The new Compaq models started shipping earlier this week and should arrive at most retailers before the end of June.

Have we see the end of the price drops? Not by a long shot. Oziel concedes that by year-end Compaq will sell consumer notebooks for less than $2,000 and home desktop computers for under $900.

Yet Hewlett-Packard Canada, a big winner in the home PC market over the past three years, has already announced its first PC that sells for less than a grand. The HP Pavilion 4530 ($999) is based on an AMD K6-2 processor operating at 350 MHz. It's configured a tad lighter than most competing home PCs, with just 32 MB of RAM.

IBM Canada has five new Aptiva E-series models in what it calls its Fall line-up. Prices start at $1,399, including a 15-inch monitor. Instead of pre-loading all software at the factory, you can choose the software applications you want from the Applications CD included with the units.

Two new IBM ThinkPad I series notebooks ($2,499 to $3,299) feature upgraded audio using Altec Lansing stereo speakers. CW

Richard Morochove, FCA, is a Toronto-based computer consultant.

Copyright ©1999 by Morochove & Associates Inc. All rights reserved. This work may not be copied or distributed by any means without our prior written permission.

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