Word: compaq
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Admit it: seated in front of a PC with the name scratched off, you couldn't tell the difference between an IBM and a Dell, Compaq or Gateway. And would you care? Probably not. Buying a PC today is no more complex than getting, say, a toaster. Or, if you're looking at something really sophisticated, a microwave oven...
...first run at it? Three letters: IBM.) There was a time in the mid-'90s when PC makers could count on ever more complicated applications requiring ever faster processors, causing consumers and businesses to upgrade PCs almost as often as Japan changed Prime Ministers. Sellers like Dell, Compaq, IBM, Gateway and Hewlett Packard got accustomed to 100% revenue-growth rates, while investors reaped heady returns: $1,000 invested in Dell in 1989 has grown to $640,000 today...
...head into the millennium, it's a different market, one that has tech CEOs conceiving new strategies and tech analysts revising earnings expectations downward. In just a week, analysts lowered their share-price targets for Dell, Compaq and IBM. "Hardware margins are approaching [those of] grocery stores," says Roger Kay, research manager at IDC, a technology consulting firm...
With that in mind, it's still possible to handicap the new players. The phone line networking crowd is clearly ahead of the pack, with more companies backing the technology. Compaq, for one, is selling a Presario desktop PC model already prepped to work with a home phone-line networking system. (See box for information on other products...
...major antitrust trial. The truce helps establish new limits on the exercise of market dominance. In the Intel case, the microprocessor giant has agreed not to withhold -- or threaten to withhold -- technical information as a way of getting companies to sign away intellectual property rights. Computer makers such as Compaq, IBM and Dell are highly dependent on Intel for advanced information when designing new computers that will make the most of Intel's chips. Intel can still keep information about its chips confidential for legitimate business reasons (e.g., the information is being used to design competing chips...