Compaq Unveils Computers Compatible With IBM's Top-of-Line PC AT Model

A Wall Street Journal News Roundup

The Wall Street Journal

May 1, 1985

Compaq Computer Corp. unveiled portable and desktop personal computers compatible with International Business Machines Corp.'s top-of-the-line PC AT.

Seeking to distinguish its presentation amid several new product announcements by computer companies yesterday, Compaq rocked its annual meeting with a laser show and a concert by the Pointer Sisters in presenting the machines.

Houston-based Compaq said the new computers already are being shipped to dealers in the U.S. and Canada and will be available in Europe in the third quarter. The timing of the shipments is crucial because more than a dozen other companies are expected to try to cash in on demand for the IBM AT, which has been plagued by shortages. IBM has said that AT shipments in the second quarter will be twice that of the first quarter.

The new machines will be available in two different models, ranging in price from $4,500 to $6,300. The price range is about the same as for IBM's AT line.

Compaq said both its new computers run as much as 30% faster than the IBM AT. The top portable model has memory of 640 kilobytes, a 1.2 megabyte double-density diskette drive, a 20 megabyte fixed-disk drive, and two IBM AT-compatible expansion slots. The portable weighs 28 pounds and comes with a nine-inch color monitor that displays both text and graphics on the same screen.

The company said its premium desktop model has memory of 512 kilobytes, a 1.2 megabyte double-density diskette drive, and a 30 megabyte fixed-disk drive. The machine also has four AT-compatible expansion slots and a 12-inch color monitor.

IBM's enhanced AT model has a memory of 512 kilobytes, a 1.2 megabyte disk drive and a 20 megabyte hard disk. The basic AT model has a memory of 256 kilobytes and a 1.2 megabyte disk drive, but doesn't have a hard disk.

Anticipating that the two new machines could hurt sales of earlier models, Compaq cut prices between 4% and 20% on many of its personal and portable computers.

In national over-the-counter trading yesterday, Compaq closed at $9 a share, up 12.5 cents.

Meanwhile, Dayton, Ohio-based NCR Corp. introduced three new personal computers, including a system designed for small retailers and a powerful stand-alone unit.

The maker of computers and computer equipment said, "With the introduction of these products, we are showing a firm intent to increase our participation in the personal computer market."

The company said the NCR PC8 can be used as a powerful stand-alone unit or in a local-area network. The models are priced at $3,795 and $5,505 and will be shipped to dealers late in the third quarter, the company said.

NCR also introduced an IBM-compatible model, the NCR PC6. The basic model, priced at $2,583, will be available in July. NCR said the model will compete with IBM's PC XT.

The company's retail personal computer system, which ranges in price from $4,331 to $8,691, is available immediately.

In composite trading on the New York Stock Exchange yesterday, NCR closed at $26.125 a share, down 37.5 cents.

Separately, Datapoint Corp., a San Antonio, Texas-based computer maker, said it signed a joint marketing agreement with Fujitsu Business Communications to promote the companies' office telecommunications products. Fujitsu, based in Japan, operates in the U.S. as American Telecom Inc. The companies said marketing efforts would promote use of Fujitsu's PBX technology with Datapoint's local-area networks, which are systems linking software, computers and other computer gear.

Datapoint also said it signed a letter of intent to service picture telephones and other products to be made by Image Data Corp., a closely held company also based in San Antonio.

In composite trading on the Big Board yesterday, Datapoint closed at $14.50 a share, up 37.5 cents.