Notebook makers go to war as IBM claims price victory

A price war on notebooks is set to erupt over the next few months as IBM has claimed that it has managed to undercut both Toshiba and Compaq across their range. Peter Bragg, Thinkpad product manager at the IBM PC Co UK, said: ?We?re taking the lead and it?s on the 380 and 310D ranges.? He claimed that IBM had undercut Toshiba?s 220CS by a total of #167 with its 310D priced at #1,452. At the top end of the range, he said IBM had beaten Compaq with its 310/ 300 at #1,852 against the Compaq 41/31T at #1,999. IBM is also undercutting Toshiba?s MMX notebook offering, Bragg claimed. ?Our 380 top-end machine has a 150MHz processor and costs #2,571, while Toshiba?s 440CDT only uses a 133MHz chip and costs #2,695,? he said. He rubbished Compaq?s position in the market, saying: ?It is probably selling its mothers and grandmothers and is dropping its prices everywhere.? But David Matthews, notebook product marketing manager at Compaq, disputed IBM?s claims. He said: ?He?s comparing apples with oranges ? we are very competitively priced. We think that our new prices this week make us very well placed.? Matthews claimed that recent Gartner Group research which recommended that people should not buy Compaq portables had not affected its market share or pricing. ?Gartner is covering old ground and we?ve actively gone out and fixed things,? he said. He added that Compaq had ensured that its customers had stayed loyal to its brand. The Gartner Group?s report recommended that users avoid buying Compaq machines as a result of the number of failures. Gartner believed Compaq had not taken the time to ensure that its machines did not arrive dead on arrival. A representative at Toshiba said: ?If IBM has undercut us on price, it will be the first time ever. And if there is a discrepancy, we will address it.? he Gartner Group?s report recommended that users avoid buying Compaq machines as a result of the number of failures. Gartner believed Compaq had not taken the time to ensure that its machines did not arrive dead on arrival.