Hewlett-Packard Announces Sweeping Price Cuts for Business PCs and Workstations

HP, the industry's fastest-growing PC supplier, has announced significant price reductions for its business PCs and workstations, with discounts reaching up to 21 percent. The price cuts are effective immediately and span across HP's three brands of business PCs and PC workstations: HP Brio PCs, HP Vectra corporate PCs, and HP Kayak PC Workstations. This move comes as HP maintains its leadership in the PC industry, particularly in the United States, where it holds a 34 percent market share in Pentium II-based desktop PC sales.

Key Takeaways:

• HP has reduced prices for its Pentium II processor-based models by up to 21 percent across its three brands: HP Brio PCs, HP Vectra corporate PCs, and HP Kayak PC Workstations.
• The prices of HP Brio PCs have been reduced by up to 15 percent, making the 300MHz Pentium II processor available in a feature-rich platform for an estimated street price of $1,389 (U.S.).
• HP Vectra VL corporate PCs, the single best-selling Pentium II processor-based PC in the dealer channel, have seen price reductions of up to 21 percent. A VL PC with a 266MHz Pentium II processor, 32MB SDRAM, and a 4.3GB SMART II UltraATA hard-disk drive now has an estimated street price of just $1,399 (U.S.).
• The HP Kayak PC Workstation line has seen price reductions of up to 19 percent, with a 266MHz Pentium II processor, 32MB SDRAM, and a 4.3GB hard-disk drive now available for an estimated street price of $1,690 (U.S.).
• HP is the official information-technology hardware and maintenance supplier to the 1998 World Cup soccer tournament.
• The company has a strong presence in the global market, with 123,300 employees and revenue of $42.9 billion in its 1997 fiscal year.

Statistics:

• HP holds a 34 percent market share in Pentium II-based desktop PC sales in the United States.
• The price reductions for HP Brio PCs range from 10-15 percent, depending on the model.
• The price reductions for HP Vectra VL corporate PCs range from 15-21 percent, depending on the model.
• The price reductions for HP Kayak PC Workstations range from 10-19 percent, depending on the model.
• HP achieved the No. 1 position in the PC workstation market in the quarterly Shipments Report released March 2, 1998.
• HP was the leading supplier of workstations worldwide in 1997, according to International Data Corp.'s 1997 Workstation Market Year in Review (revised preliminary estimates issued Jan. 8, 1998).

Sources:

• (1) Hewlett-Packard Company, "HP Announces Sweeping Price Cuts for Business PCs and Workstations"
• (2) Intelect ASW, "U.S. Dealer Channel Report"
• (3) InfoWorld, Feb. 2, 1998
• (4) Hewlett-Packard Company, "HP Announces Leadership in PC Workstation Market"
• (5) International Data Corp.'s 1997 Workstation Market Year in Review, revised preliminary estimates issued Jan. 8, 1998