Compaq Unveils Lower-Priced Computers

Compaq Computer Corp. has introduced home computers starting at $1,199, cheaper than some rivals, as it looks to lure buyers in the important holiday sales season. The world’s largest maker of personal computers introduced five Presario PCs, including two desktops and three laptops. The desktops come with either an Advanced Micro Devices’ K6-2 processor or an Intel Pentium II chip and are priced as much as 24% lower than comparable models from No. 3 PC maker Dell Computer Corp., Compaq said. Compaq is counting on the new models to spur sales and stem slowing growth in shipments after it struggled with excess inventory through the first half, which wiped out most of its profit. Its shipments rose 11% in the second quarter, compared with 72% for Dell. The Houston-based company also introduced new computers for educational use, starting at $999 including the monitor. Its shares rose 25 cents to close at $31.88 on the NYSE.