IN BRIEF : Desktop Computer Price Cut $200

Compaq Computer Corp. said today it has cut the suggested retail prices of its Deskpro 386S desktop computers by $200, sending its share price lower.

Compaq was down $1.75 at $72.75 in midday trading on the New York Stock Exchange.

Traders said there is concern among investors that the price cuts may hurt the Houston-based personal computer maker’s earnings or signal a weakness in sales of the 386S models.

But Compaq spokesman Bob Beach said demand remains strong for the 386S line, which uses Intel Corp.’s 80386SX microprocessor. The line was introduced in June, 1988, and supplies just recently caught up with demand, he said.

Compaq said the new price of the Deskpro 386 Model I was $3,599, while the Model 20 and Model 40 machines were priced at $4,299 and $4,999 respectively.

Beach said the timing of the price cuts followed Compaq’s normal pattern for lowering prices over the course of a product’s life. “This is pretty much in line with time lines for other products,” he said. He said the reductions also reflect lower costs for the Intel chip.