Come the New Year Hewlett-Packard will make price cuts in its personal systems products of up to 20 per cent, a UK spokesperson said today. The rest of Europe is likely to follow with similar cuts.
HP in the US announced yesterday wide ranging price cuts, mostly to desktop and networking products. The UK said it would be making similar cuts early in January to list prices.
"There will be general price cuts on all product lines. As usual these are mainly driven by processor price movements as some platforms reach end of life," said Borel Setten, marketing manager for the personal systems group in the UK.
Intel is announcing higher speed Celeron processors in the New Year, meaning price cuts on existing products.
Typical HP examples are a Vectra 333MHz Intel Celeron PC dropping by nine per cent, hub products dropping by 12 per cent and selected products by as much as 20 per cent. Four way Intel Xeon servers will remain relatively stable however.
Setten said to expect a very aggressive attack on the PC workstation market early in 1999 as well.
Meanwhile, flying in the face of accusations that it is about to dump its channel and go direct, HP has launched an advertising campaign aimed at promoting its reseller base.
This is the first time HP has run an ad campaign on behalf of its channel and it will be specifically for its Connect accreditation programme.
Connect groups all existing HP accreditation schemes into five categories: wholesaler; Connect reseller; select business reseller; select value added reseller; and select corporate reseller.
The idea, HP claims, is that this approach is more streamlined and makes for more efficient account management.
Kevin Kearney, HP EMEA commercial channel marketing manager said: "When we launched the Connect programme, we promised we would take an active role in helping our channel partners promote its values. This advertising campaign does that by appealing directly to end users, letting them know Connect is a name they can trust."
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