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HP unveils low-cost PC
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February 22, 2000: 3:48 p.m. ET
Desktop system aimed at corporate users is set to ship later this year
By Staff Writer Richard Richtmyer
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NEW YORK (CNNfn) - Hewlett-Packard unveiled a new line of small-size, low-cost desktop computers Tuesday aimed at corporate users, marking its entry into what industry observers expect to become the new market standard in commercial computing environments.
Dubbed the e-Vectra, HP's (HWP: Research, Estimates) new system weighs just eight pounds and is 3.5 inches wide, 9.4 inches high and 10.7 inches deep, making it roughly the size of a hard-cover dictionary.
In addition to its small size, the eVectra, set to begin shipping during the second quarter this year, sports a lower price tag than typical business computers, starting at $549 for a system equipped with an Intel Celeron processor, HP said.
Another distinction between the eVectra and its business-computer predecessors is the way its components are packaged. Customers select specific configurations and the units are shipped to order without any expansion slots or floppy disk drive, which make it more reliable and easier to support, according to Eric Candor, general manager of HP's business desktop division.
"Corporate customers have been asking for innovative, appliance-like desktop solutions that fit easily into their specific computing infrastructures," Cador said.
HP's eVectra line is the latest in a recent spate of low-cost, small form-factor business computers emerging the market.
In January, Compaq unveiled its iPaq line, which began shipping this month. The iPaq is designed for use in corporate network environments for employees who use their PC primarily for mainstream office productivity applications and corporate Internet and Intranet access.
IBM also is developing a low-cost, space-saving desktop code named "Stardust," which is expected to begin shipping later this year.
Market analysts said they expect the new, small form-factor PCs to account for much of the volume in business PCs moving ahead.
"We think within three years, 60 percent of all desktop computers shipped will be these small form-factor devices," said Martin Reynolds, an analyst at technology research firm DataQuest. "And that could happen even sooner."
"If you're a PC manufacturer in the U.S. and you want to continue to grow the market, you have to shorten the replacement cycle," Reynolds added. "These small PCs are really compelling because they have no expansion, so there's really only one configuration, making it less expensive to support in the long run. They have the manageability that you want. They're really fully-qualified machines, and if you wanted to deploy windows 2000 for your organization, these things are the way to do it."
The HP eVectra systems will be available with Intel Pentium III or Celeron processors; Microsoft's Windows 2000, Windows 98 or Windows NT 4.0 operating system; up to 256 megabytes of RAM; and an 8.4 gigabyte hard drive.
"We expect HP to be very successful with this product, as we expect Compaq to be with the iPaq," Dataquest's Reynolds said.
In New York Stock Exchange trade late Tuesday, HP shares were down 15/16 at 128-1/16. 
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Hewlett-Packard
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