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Wed, Sep 12, 2001 - Page 21 News List

Compaq brands likely to vanish from the market

CONSOLIDATION Hewlett-Packard's buyout of the PC manufacturer may mean the end of most Compaq models, but servers may remain

BLOOMBERG , HOUSTON

Compaq PCs that are sold to corporations already are undergoing a name change.

Compaq in May consolidated five brands with names such as Desktop, Armada and Professional Workstation into one line, called Evo.

Compaq's Ipaq Pocket PCs are likely to survive, because the handheld organizers are more popular than H-P's competing model, the Jornada, analysts said. Compaq doubled its worldwide handheld market share to 16.1 percent in the second quarter, compared with H-P's 6.9 percent, according to Dataquest Inc.

Compaq makes three types of servers, thel computers that run Internet sites and data centers.

"On the server side, it's a tradeoff" on which brands might be kept, said Ashok Kumar, a US Bancorp Piper Jaffray analyst.

"Compaq is very strong on the high-end server. The low end has been made a commodity by Dell."

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