Compaq: Turning The Tables On Dell?

Compaq Chief Executive Eckhard Pfeiffer insists he's not on a "get Dell" vendetta. But he may as well be. Starting Mar. 8, the Houston PC maker launched a three-pronged assault that strikes at the heart of its Austin rival. First, Compaq Computer Co. dropped its prices by as much as 15%, undercutting onetime price leader Dell Computer Co. for the second time in a year and leading IBM to cut prices, too. At the same time, it brought out 39 new models, challenging Dell's engineers to keep up. Worst, on Mar. 22, Compaq is slated to plunge into direct-response selling--the business that put Dell on the map.

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