home *** CD-ROM | disk | FTP | other *** search
Text File | 1990-04-25 | 5.0 KB | 109 lines | [TEXT/GEOL] |
- Confidential / Apple Product Marketing
- Contact: David Garr, Competitive Analysis, GARR1
-
- COMPAQ INTRODUCES AGGRESSIVELY PRICED 386/25e 3/8/90
-
-
- __________________________
- SUMMARY
-
- On Monday March 5, Compaq introduced the Deskpro 386/25e, an aggressively
- priced 25-MHz 80386-based machine. We expect the 386/25e to eventually replace
- the larger and more expensive 386/25 which has been available for almost two
- years. The 386/25e is shipping immediately. Compaq also announced 4 Mbit DRAM
- modules for the SLT/286 and price reductions on memory modules for desktop
- systems.
-
- _____________________
- Overview of hardware.
-
- The Deskpro 386/25e comes standard with 4 MB of memory, integrated VGA, and
- four ISA slots. Three models of the 386/25e are available:
-
- No hard disk: $6,499
- 60 MB disk: $7,699
- 120 MB disk: $8,499
-
- The 386/25e is smaller than the older 386/25. Compaq calls it "a streamlined
- desktop design that fits easily on a credenza." The 386/25 is large and clunky
- looking. Compaq's more recently introduced systems, the 386s and the 386/20e,
- are smaller form factor systems, and we had been expecting them to introduce a
- 25-MHz system in a similar size. We expect Compaq to phase out the older
- 386/25 over time.
-
- Priced lower than older 386/25.
-
- The 386/25e is a much better deal than Compaq's older 386/25. The version with
- a 60 MB hard disk is priced at $7,699, which is $300 less than the 386/25.
- However, the new 386/25e comes with 4 MB of memory and VGA standard, whereas
- the previous model had only 1 MB and no video controller. In total, the
- 386/25e is priced about $2,400 less than the older model (when comparably
- configured).
-
- Memory prices decreased.
-
- Compaq announced price reductions on 1, 2, and 4 MB memory modules for desktop
- products. One MB memory modules are $499, 2 MB memory modules are $999, and 4
- MB memory modules are $1,999. Therefore, Compaq's memory prices on these
- modules are now the same as Apple's. (Compaq's memory had been priced at $699,
- $1,299, and $2,599 respectively.)
-
- With the 386/25e announcement, Compaq is indicating that it believes that all
- higher performance PCs should have a minimum of 4 MB of memory. The Compaq
- 386/20e, the 386/25e, the 386/33, the 486/25, and the SystemPro all come
- standard with 4 MB of RAM.
-
- 4Mbit DRAM modules for SLT/286.
-
- Compaq also announced a $2,599 4 MB memory module option for the SLT/286
- portable. Compaq is using 4 Mbit chips in these modules. The SLT/286
- previously could only be upgraded to 3.6 MB (by adding three 1 MB memory
- modules). It can now be upgraded to 12.6 MB when three of the 4 MB modules are
- added.
-
- Significance for Apple.
-
- Compaq now has a very aggressively priced 25-MHz system. Here is a pricing
- comparison of the Compaq 386/25e with the Macintosh IIci and the IBM 25-MHz
- 386. The IBM machine is priced over $2,000 more than Compaq's 386/25e. We
- expect IBM to decrease its price sometime this year to bring it more in line
- with Compaq.
-
- Std Color keybrd Op. Total
- config Monitor Sys.
- Compaq 386/25 (4MB, 60HD) $7,699 $699 0 $340 $8,738
- Macintosh IIci (4MB, 80HD) $8,669 $999 $229 0 $9,897
- IBM PS/2 70 386 (4MB, 60HD) $9,890 $750 0 $340 $10,980
-
- This comparison doesn't include some of the hardware that comes standard on the
- Macintosh IIci, such as math coprocessor, built-in networking, SCSI, mouse, and
- sound chip. Therefore, when industry analysts or customers make pricing
- comparisons between the Compaq (and other PC compatibles) and the Macintosh,
- Apple should attempt to ensure that costs for these additional hardware
- features are included for both. When you add these features to the 386/25e,
- its total price is increased by about $2,400, thus making the IIci less
- expensive.
-
- All megahertz are not created equal. National Software Testing Laboratories
- compared the performance of the standard IIci (on-board video and no cache
- card) with the older Compaq 386/25. We think NSTL's benchmarks are still
- relevant since Compaq did not claim that the newer 386/25e was faster than the
- previous 386/25. NSTL found that the standard IIci was 60% faster than the
- 386/25 running Excel, 103% faster running Illustrator, and 13% slower running
- PageMaker. Averaging these three tests shows that the IIci was about 50%
- faster than the 386/25 running these graphics-based applications.
-
- IIci is a Macintosh. More important than its excellent performance and
- standard hardware features, the IIci is a Macintosh. As such, it has all the
- Apple advantages over Compaq's 386/25e and other PC compatibles (easier to use,
- thousands of consistent applications, etc.) People comparing a PC compatible
- with a Macintosh should determine what they can accomplish with the whole
- system, and not just compare megahertz and price.
-
- ______________________
- If you'd like more information, please link COMPETITION.
- We also welcome your comments and suggestions.
-
-
-
-