Compaq Computer Corp is looking for a new stream of revenue to be generated from the internet with the launch of its new Presario personal computers. The new machines have been designed for home users, and feature a keyboard with buttons that sit above the number pad that give internet users a direct link to search engines, electronic mail, and shopping services. Compaq has struck a series of deals with third party companies in the US, such as Yahoo! Inc, GTE Corp and America Online Inc, and the computer giant will receive monthly fees dependent on how often users of the new machines access those services. The internet connection is made via Microsoft Corp’s Internet Explorer, which is accessed when the specific button is pushed. Compaq plans to build a business valued at $1bn by 2001 from such fees. To help get it there, Compaq is offering users a $100 cash back scheme when users sign up a trial internet subscription with AOL, or another ‘approved’ provider. That deal is only applicable in the US, although the machines are available on a global basis as of today. There are several machines in the new Presario family, including the lower end 2254 which uses a 233MHz AMD K6 chip, moving to the 5000 series which contains Intel’s 300MHz Celeron chip in the 5020 model and the 300MHz Pentium II chip in the 5030. Compaq wants to start cashing in on the direct selling model, following the success of Dell Computer Corp. Customers who buy the PCs in a store will be able to request a customized machine and have it delivered within a few days, and eventually Compaq in the US, expects that between 20% and 30% of its machines will be sold that way. Compaq is including graphics chips from 3Dfx Interactive Inc’s and Diamond Multimedia Inc for the systems, and Syquest Technology Inc’s 1Gb SparQ drive will also be included.
