Pc Makers Tune Image Computer Giants Take Steps To Differentiate Themselves
Personal computer makers are counting on remote controls, high-quality speakers and even dark colors to make consumers buy their machines this fall.
CD-ROM drives, modems and big bundles of software that distinguished individual models in the past are now found on every PC sold for home use.
And so other things are being tried - from color-coded connecting cables to programs that can be started with a voice command. Packard Bell Electronics Inc. and Acer America Inc. even have remote controls with their new models.
“The whole deal is trying to get this idea of differentiation across,” said Ross Cooley, senior vice president of Compaq Computer Corp., which on Wednesday became the last major PC maker to unveil its new products for consumers.
The reason is that, like TVs or stereos, PCs have common ingredients. They are Intel-type micro-processors and Microsoft Windows software. Apple Computer Inc.’s products stand out because they vary from that basic design.
Unlike previous years, companies are not counting as much on low prices to distinguish themselves. Very few PC makers will sell a model for less than $1,500 during the fall and holidays, the busiest sales period for computers.
Even Packard Bell, which became the leading PC seller through stores on the basis of low prices, will only have one model for less than $1,500. And Hewlett-Packard Co., taking its first steps in the market, barely qualifies with its low-cost machine priced at $1,499.
Many analysts believe, and some executives acknowledge, average selling prices this fall will jump up several hundred dollars.
The main reason is that Microsoft’s new Windows 95 operating program, standard on new PCs for home use, and many multimedia programs require more memory chips. Those chips have been holding steady in price or even gone up a bit in the past two years, in contrast to declines for nearly every other component.
In addition, sound and video improvements typically require extra chips or special programs that add to price.
Most PC makers have also spent a lot to create software programs that reside on top of Windows to make it easier to do things like find files or prevent children from accessing certain data. Packard Bell and AST Research Inc. pioneered the concept and it has now been copied by virtually everyone.
But some observers wonder whether the time has past for the programs, particularly since Windows 95 has solved many of the problems from the previous Windows that the custom interface programs addressed.
“Frankly, our research shows that these interfaces tend to make things more complicated,” said David Goldstein, president of Channel Marketing Corp., a Dallas technology market research firm. “When you have technical problems installing software, you’re going to have them with both Windows and the custom program.”
Many PC makers tout their sound and video advances as the most important distinguishing features. Digital Equipment Corp., for instance, equips its models with speakers by JBL and Compaq hired engineers from Bose to develop its speakers.
Several manufacturers boast full-screen video but they’ve accomplished that through different combinations of chips and software, leaving the buyer to make a comparison in the store.
Meanwhile, Packard Bell and Hewlett-Packard are trying variations on the standard beige box design with diamond or bloated tower shapes. And Acer abandoned beige for charcoal black and dark green, noting that dark colors fit well in many homes.
“When you go into the store, what is the first thing you’re going to notice about a PC? Is it whether it runs MPEG video or has surround sound?” asked Richard Zwetchkenbaum, analyst at International Data Corp. “I think it’s color and visual design.”