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- Confidential / Need to know
- From: David Garr, Competitive Analysis
-
-
- COMPAQ ANNOUNCES LTE 386s/20 NOTEBOOK
-
- _______
- SUMMARY
-
- On October 15, Compaq announced the LTE 386s/20, the smallest computer to
- incorporate the 20 MHz 386SX processor. The LTE 386s/20 weighs 7 1/2 pounds,
- which is almost a pound heavier than the previous LTE machines. The 2 MB RAM,
- 30 MB hard disk configuration is priced at $6,499. It will be available in
- limited quantities in October.
-
- Although the LTE 386s/20 will reinforce Compaq's image of offering the latest
- technology, we think its sales will be limited. Its high price will discourage
- many customers who are looking for a second computer for the road.
-
- _________________________________________________
- WHAT HAPPENED: SPECIFICATIONS OF THE LTE 386s/20
-
- The LTE 386s/20 is the new high-end of the LTE family, priced $2,500 more than
- the LTE/286. The LTE 386s/20 weighs 7 1/2 pounds and measures just 8 1/2 by 11
- inches, and is 2 1/4 inches high. It comes equipped with 2 MB of RAM, a
- 3.5-inch floppy drive, and VGA graphics. The 30 MB hard disk configuration is
- priced at $6,499 while the 60 MB configuration is priced at $6,999.
-
- The LTE 386s/20 incorporates a VGA screen (which is much better than the CGA
- capabilities in the previous LTE machines). Compaq estimates its battery life
- at 3.5 hours.
-
- 1 MB and 4 MB memory upgrade cards (the size of a credit card) are optional.
- Memory for the LTE 386s/20 is expandable to 10 MB (if two 4 MB upgrade cards
- are added).
-
- Compaq is touting a number of innovations with this notebook computer:
-
- * It uses a 2 1/2" hard disk drive, which Compaq claims is the first drive of
- this size to hold 60 MB. Compaq compared its size to a deck of playing cards.
-
- * A desktop expansion base is priced at $1,499. The LTE 386s/20 can be
- slipped into the base and take advantage of two ISA expansion slots and any
- peripherals attached to the base, such as a color monitor or a full-size
- keyboard. Compaq hopes that many people will buy the LTE 386s/20 as their
- primary computer and use the expansion base to create a system that works like
- a regular DeskPro.
-
- * The LTE 386s/20 incorporates a printed circuit board technology called
- Regal (rigid epoxy glass acrylic laminate) Flex. It reportedly saves space and
- weight and ensures better reliability of circuit boards.
-
- The following chart shows that the LTE 386s/20 offers faster performance, more
- memory, and better screen resolution than the LTE machines Compaq introduced a
- year ago. However, the pricing is also much higher. Also listed is the new
- Sharp notebook computer which has received excellent reviews for its small size
- and weight.
-
- Processor RAM Disk Graphics Weight Dimensions Price
- HxWxD (in)
- -----------------------------------------------------------------
- LTE 8086 (9.5-MHz) 640KB 20MB CGA 6.7 lbs 1.9x11x8.5 $2,699
- LTE/286 80286 (12-MHz) 640KB 40MB CGA 6.7 lbs 1.9x11x8.5 $3,999
- LTE 386s/20 80386SX (20MHz) 2MB 30MB VGA 7.5 lbs 2.25x11x8.5 $6,499
- Sharp PC-6220 80286 (12-MHz) 1MB 20MB VGA 4.4 lbs 1.4x11x8.5 $3,999
-
- __________________
- WHAT DOES IT MEAN?
-
- The LTE 386s/20 brings a new level of performance to the notebook computer
- catagory. Compaq claims that it is the "highest performance notebook personal
- computer available" and that it "processes information up to 50 percent faster
- than 16-MHz 386SX-based systems."
-
- Compaq has introduced many innovations with the LTE 386s/20, such as the 60 MB
- 2 1/2" hard disk and the desktop expansion base. These advancements in
- technology will further enhance Compaq's reputation for being on the cutting
- edge of new technology.
-
- Although one of Compaq's target markets is professionals using "windowing and
- graphics-based applications," the LTE 386s/20, along with all laptops using
- supertwist LCD screen technology, has slow screen updating. When a mouse is
- being used, the cursor submarines when it is moved, and can be difficult to
- locate. Therefore, we believe that Windows 3.0 will be awkward to use on this
- machine.
-
- In summary, we think that the technology of the LTE 386s/20 is leading edge.
- However, we believe that sales will be weak because, compared to other notebook
- computers, the price of the LTE 386s/20 is very high. Since many people
- consider notebook computers for their second computer, in addition to the one
- on the desktop, the $6,499 price could make it difficult to justify. We
- believe that less expensive, lighter 286-based notebook computers like the
- Sharp PC-6220 will have much higher sales than the LTE 386s/20.
-
- We expect Compaq to lower the price of the LTE 386s/20 when competitive
- 386SX-based notebook computers begin shipping in a few months.
-
- ______________________
- IMPLICATIONS TO APPLE:
-
- * Diversity of mobile computers. Compaq now has three notebook computers
- (LTE, LTE/286, LTE 386s/20), two portables (SLT/286 and SLT 386s/20), and a
- transportable (Portable 386). Each of these machines appeals to a different
- segment of the market, depending on the customer's desire for portability vs.
- functionality. Companies which are trying to compete in the mobile computer
- market face the challenging task of providing a wider variety of machines than
- in the past.
-
- * Advantages of the Macintosh Portable. The LTE 386s/20 is small and yet
- offers many attractive features. However, it does not have the functionality
- of the Macintosh Portable. It cannot run a graphical environment very well
- (slow screen updating, no built-in pointing device). Its battery life lasts
- about half as long as the Macintosh battery. It doesn't have networking built
- in. It is more expensive. And most importantly, it is not a Macintosh, and so
- it lacks the power, integration, and intuitiveness of the Macintosh.
-
- ______________________
- We welcome your feedback. Please link us at COMPETITION.
-
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