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Portable PC prices to fall
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May 1, 1998: 3:37 p.m. ET
Dell, Gateway cut prices on laptops with Intel's Pentium II chip by up to 10 percent
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NEW YORK (CNNfn) - Gateway Inc., fresh from dumping the "2000" tag to its name, is now cutting something else: prices on its laptop computers - but rival Dell Computer Corp. isn't far behind.
Gateway, the No. 2 direct marketing computer vendor, said Friday it will lower prices on two models in its Solo portable PCs line by up to 10 percent.
The North Sioux City, Idaho-based company said the move puts it among the first computer makers to cut prices on its consumer-oriented laptops that feature the Intel Corp. Pentium II chip.
"While some other vendors have yet to introduce Pentium II processors to their notebook lines, we are already cutting our prices," said Bob Burnett, vice president for portable products at Gateway, in a statement.
Gateway is lowering the price of the Solo 2300 SE Notebook, with its 200 Megahertz processor, to $1,699, $200 below its original price. The Solo 5100 XL Notebook, featuring a 266 Mz processor, will be lowered by $100 to $3,799 just as its memory is upgraded
Meanwhile, Dell, the nation's leading direct marketer of PC's, said it too will roll out $100 price cuts on two portable computer lines starting Monday.
Adrianne MacPherson, a Dell spokeswoman, said the Round Rock, Texas-based vendor will cut the price of its Inspiron 3000 M233XT to $2,499, and its Inspiron 3000 M233ST to $2,299. Both feature a 233 Mz. Pentium II processor.
The moves come at a time that direct marketers have cut into sales by computer giants such as Compaq Computer Corp. and IBM Corp. and the advent of the sub-$1,000 desktop PC has driven a price war in the industry.
Bob Moore, a senior product manager, said that portables, while falling in price as demand climbs, are not likely to dip below that $1,000 price point any time soon.
Gateway shares (GTW) were off 1/2 at 58- 5/16 Friday while Dell shares (DELL) were up 2-5/8 at 83-3/8.
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Gateway
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