Pentium PC prices take a big tumble

A major round of desktop and notebook price slashing heralds savings on Intel's Pentium II processors and a kickstart to the sluggish European market.

IBM is dropping prices on its PC 300GL and PC300PL series, according to Mike Lunch, general manager of the IBM PC Company in the UK. Eight models in the 300GL series will drop by around #100, while the nine models in the 300PL series are each reduced by around #200.

Hewlett-Packard is chopping prices on its Vectra line with Pentium II-based machines starting at #1,370. Models sporting 300MHz Pentium II will come in at #1,770. Dell will also fall into line with price cuts, but Compaq sits alone with no immediate plans to do the same on its desktops.

James Foulk, research analysts with market watchers IDC, said: 'Vendors are struggling to increase sales. The Compaqs and IBMs really don't want to push prices down but they desperately want to sell PCs - not just for the revenues, but for market share.'

IBM has also introduced cuts on its Thinkpad range. For the first time it is offering a Thinkpad at below #1,000. The 310/100 model, formerly sold at #1,290, is now down 24% to #977. Compaq has chopped prices by up to 18% across its Armada notebook range. The entry-level product is down 4% to #1,199.