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Compaq Computer Corp has slashed the price of its 8086-based Deskpro 2 model by 29% to $1,699 and dropped the models 1 and 3 of the machine. The price buys a system with 256Kb CPU and two 360Kb floppies. The machine also includes space for four internal storage devices compared with three on the IBM XT, as well as support for internal tape back-up. While Compaq is clearly coming under pressure from low-cost Asian clones, the Houston company says that it has been able to cut the price because of strong market success for the machine and because of better manufacturing efficiency.

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