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Windows memory issue clogs some Compaq PCs
Many customers have been complaining that Compaq's Presario 5800 and 5900 models have been
freezing up. The complaints increased around Christmas, and the computer maker's customer support
operations--both telephone and online--have been swamped dealing with the problem, Compaq said.

For Compaq, 1999 was the year that wasn't
Rather than entering 2000 as a $50 billion company that could rival IBM or Hewlett-Packard in the
breadth of its technology and capability, Compaq is fighting for survival.

Dell topples Compaq in U.S. market share
Dell Computer has pushed aside Compaq Computer for the top spot in PC market share--at least in the
United States. (10/29/95)

Compaq gets only "fair" ratings--no "good" or "outstanding"
Dell and Gateway finish ahead in all three
catagories of work, home, and notebook PCs (12/99)
(PC World Reliability and Service survey, based on online participants' responses recorded over two
periods of time: December 1998 through January 1999, and June through August 1999.)

Next Compaq challenge: Quality, customer satisfaction
After years of product quality and customer support
problems, Compaq Computer Corp. is taking a big step
to address the issues. (8/9/99)

Don't Get Mad--Get Even
When vendors take business direct, it means their stocks are about to tank. Ditto for Compaq, which actually started the rush toward direct sales among PC vendors trying to keep pace with Dell. It since has dumped its CEO and taken repeated earnings hits, down from a high of about $51 last winter to $19.50 late last week. The company turned a profit in its latest quarter, but it's still trying to return to its former glory.  (11/1/99)

Compaq CEO ousted
Chief Executive Eckhard Pfeiffer, Chief Financial Officer Earl Mason, both resign.

Compaq's senior VP Michael Heil resigns
Heil, 51, resigned as general manager of worldwide sales effective immediately

When customers buy Compaq, they're buying the best technology and thinking from Compaq plus our partners, meaning Microsoft plus Intel plus Novell, plus hundreds of others — all of it pulled together into a solution that Compaq takes responsibility for.  It's this partnership-centered approach that enables Compaq to create the best buying experience, the best usage experience, the best upgrade and refresh experience, in short, the best customer relationship experience available in the industry.
Echhard Pfeiffer, President and CEO, Compaq, 1996

"Customer satisfaction. In January 1995, we communicated to all of our employees a new corporate goal: To become the computer industry's worldwide leader in all key aspects of customer satisfaction by 1997."
Eckhard Pfeiffer, President and Chief Executive Officer, Compaq Corporation, February 24, 1995

"You're right in believing that consumers deserve the best. But the saying goes that you get what you pay for, and because consumers demand FREE support, Compaq has to cut corners in order to provide such support. When Compaq tried to turn their tech support into a department that actually broke even every quarter, consumers got upset that they would have to pay for support. Funny thing though, it was usually the ones who failed to read the docs, online manuals, or couldn't figure out how to plug in the color-coded cables who complained the loudest..."
Don Kelloway, former Compaq Phone Support Tech
Post that the quote comes from..       Thread that the post comes from...

[When Compaq is described as a company] "that prides itself on absolutely abusing it's customers.[And says to its customers] "You bought it. It's crap. Deal with it. You should of known better. You should of been more informed. You seriouslly didn't expect us to honor our warranty, Did you? Well you should of known at that price." ",  Don Kelloway, former Compaq Phone Technican, response is, "But this is something that occurs with all manufacturers, in all facets of business..."
Quoted from a post by Don Kelloway, former Compaq Phone Technican, on the Compaq Newsgroup
Post that the quote comes from...          Additional explanation of post...
 

"Our readers appreciate good tech support, and they tend to reward companies that provide it--for example, Micron, Dell, Gateway and Quantex--by buying from them again. They're far less likely to buy another PC from companies such as Compaq and PackardBell, which did poorly in our tech-support survey."
Home PC, November 1997
 

"SINNER: Compaq Computer. Yes, the Houston, Texas, powerhouse is one of only two companies to have the dubious distinction of being both saint and sinner this year. The reason: Compaq's free fall in service and support. When PC World first began reporting results from its Reliability and Service survey in 1994, Compaq's service was rated above average, and the company enjoyed one of the highest customer satisfaction ratings. But beginning about the time the company initiated its ill-fated pay-for-support plan on its Presario line, its service scores have been taking a nosedive. In our June 1997 report, the company had slid from its Best rating in March 1996 down to a Fair ratingfor service. Compaq has since decided to drop the fees, but only time will tell if customers will forgive the company."
PC World, December 1997
 

Compaq ain't doing so hot. The company has a huge installed corporate customer base, with 37 percent of study participants responding that they have bought and/or plan to buy Compaq desktops. Yet Compaq is the only manufacturer among the top vendors not to earn an A grade in the server group. "While Compaq receives good grades, there are few 'superior' grades in contrast to the other three [Dell, HP, IBM] vendors," the survey  states. "A few areas where Compaq underperforms its three major competitors include on-time delivery, ease of installation/configuration, technical support response, value-added services, and total cost of ownership."
Consumer Alert/Computers.com/ (C/net) Oct 1998

COMPAQ ANNOUNCES PRESENCE ON THE COMPAQ NEWSGROUP

(8/6/99)  Today, Darin Clapp <CONSUMER@COMPAQ.COM, posted on the Compaq Newsgroup (alt.sys.pc-clone.compaq), the following:  "My presence and the presence of my employees on this newsgroup is a result of a directive from upper management. We have been watching the group for the last several months, but until now have been answering in an unofficial capacity."  It appears that several techs (Derek S. and Brian L., along with Darin Clapp) are actively answering technical questions posted to the NG.  Users of the NG have initially offered positive opinions of this additional tech support from Compaq and Consumer@Compaq.com.  This would appear to be a huge step it the right direction for Compaq in strengthening the perception of good customer support.

In late 2000, offical presence of Compaq techs on NG is terminated with the relocation of Derek to a new position.

Insider promoted to CEO at Compaq (7/22/99) Compaq Computer has chosen Michael Capellas, who was recently promoted to the post of chief operating officer, to become its new president and chief executive. The selection of the insider Capellas, 44, ends a difficult three-month search for a new leader that began after the board asked former CEO Eckhard Pfeiffer to resign in April.

Compaq's CEO choice gets mixed reaction (7/23/99) Compaq's appointment yesterday of Michael Capellas as chief executive is getting a mixed response on Wall Street today as questions continue to swirl about the new man in charge of the PC maker's future.

Dell could pass Compaq soon (7/26/99) Although Compaq Computer remains on top of the PC heap, the numbers favor Dell taking over the No. 1 spot sometime soon.

Compaq files suit against Emachines (7/27/99) It looks like Compaq is trying to squeeze a good competitor."

Compaq reports a loss, will lay off 8,000  (7/28/99) Compaq will lay off between 6,000 and 8,000 employees more than than the 2,000 it had planned to let go as a result of acquiring Digital Equipment. To date, the PC manufacturer has completed 15,250 of an expected 17,000 Digital-related layoffs, which were announced more than a year ago.

Digital still weighs heavily on Compaq  (6/17/99) Although pricing pressure and a competitive landscape are resulting in lower-than- expected revenues for the second quarter, company executives and industry observers are largely putting the blame on the bloated infrastructure that Compaq inherited when it picked up Digital in February 1998.

Compaq anticipates large loss  (6/1799)  "The main challenges for Compaq have been falling computer prices and heavier competition for sales to large corporations. The company has been unable to offset falling prices for consumer PCs with more sales of large systems and related services to businesses, analysts said.

Compaq shares have tumbled by more than half since their January high of $51.25, making the company one of the worst performers in the Standard & Poor's 500 index."

Still Want to Be a Computer CEO?   (4/26/99)  Compaq and HP show what happens to previously successful execs whose companies don't quite get the Net.

Dell dominates small-business PC market   (6/8/99)  Dell Computer widened its lead in the U.S. small-business market in the first quarter, capturing 19.7 percent of PC shipments, the company said today. Compaq Computer, which a year ago ranked No. 1 in U.S. small-business shipments, sank to No. 3 in the first quarter of 1999.

Compaq to close plant, cut 900   (5/17/99)  Compaq Computer will close its Salem, New Hampshire, plant and cut most of the 900 jobs there as it looks to slash costs. The company has cut about 12,600 jobs already and is looking for more ways to reduce costs and become more competitive in both personal computers and expensive servers.

Compaq: Capellas named COO--Rose Resigns  (6/2/99)  Compaq has named Michael D. Capellas as its acting chief operating officer and Enrico Pesatori to head up the crucial enterprise computing group.

Compaq announced that John T. Rose, a longtime Compaq and executive who headed up the enterprise group, is resigning from the company effective June 3. Rose had been a key executive and one of former chief executive Eckhard Pfeiffer's leading lieutenants.

  CEO search may slow decision-making (5/14/99)  Compaq's search for a new chief executive could lead to delays in strategic decision making, as well as create employee retention concerns, the PC maker said in a regulatory filing today.For the quarter ended March 31, employee separations to restructuring at Compaq was 2,051. The "net headcount reduction since the date of the Digital acquisition...was about 14,200," the filing said.

Compaq Management Exodus Cranking Up  (5/11/99)  John Rando, senior vice president and general manager of Compaq Services, today became the fourth relatively high-profile Compaq executive to resign from the company in the wake of the forced resignation of former chief executive Eckhard Pfeiffer less than a month ago. And, according to most observers, he won't be the last.

Compaq's senior VP Michael Heil resigns  (4/29/99) Compaq Computer said senior vice president Michael Heil resigned, less than two weeks after the ouster of chief executive Eckhard Pfeiffer, as the No. 1 personal-computer maker restructured its sales operations.

While components drop, Windows stay up  (4/30/99) Compaq Computer senior vice president John Rose, who used to head the company's desktop division but has different duties now, provided information on the company's licensing agreement with Microsoft in his testimony. The operating system makes up about 2 to 3 percent of the total cost of manufacturing a $1,500 computer, Rose testified. In other words, Microsoft charges Compaq between $30 and $45 per computer.

Compaq slipping   (5/1/99) Leading rivals gained ground on Compaq in terms of market share... ...Michael Heil, general manager of worldwide sales, resigned to become chief executive of a data networking company.

Compaq CEO and CFO resign amid sales turmoil (4/19/99) The Houston-based company said Eckhard Pfeiffer, Compaq's president and chief executive, and Earl Mason, the company's chief financial officer, resigned around mid-day Sunday.

Eckhard Pfeiffer and Earl Mason Resign as CEO and CFO (4/18/99) Compaq Board of Directors Forms Office of the Chief Executive Under Leadership of Chairman  Benjamin Rosen

Compaq chief executive Pfeiffer ousted (4/18/99) ``What this says is that things (at Compaq) are more screwed-up than even the results would have you believe,'' said Aaron Goldberg, vice president and principal analyst at Ziff-Davis Inc. in New York.

Compaq ousts CEO in major shakeup (4/18/99) A class-action lawsuit was filed Friday alleging that Compaq, Pfeiffer, and Mason misled investors by failing to disclose

information related to weakening demand for its PCs.

  Compaq slips again (4/26/99) Compaq Computer remains king of the heap when it comes to PC sales, but  its closest rivals are rapidly bridging the gap.

The week in review: Compaq CEO ousted (4/24/99) Analysts immediately hailed the move, saying Compaq was ripe for a management overhaul because of baffling corporate behavior and too many earnings surprises.

  Pfeiffer: Compaq's board shares blame (4/21/99) "There was a lot of behind-the-back discussion. I would have expected more openness, and also I would have expected that after the March board meeting I would have had a chance to present a recovery plan," Pfeiffer said.

Compaq profits meet lowered forecasts (4/21/99) Compaq Computer reported first-quarter profits of $281 million, or 16 cents a share--about half of what Wall Street originally expected--while lacing its report  with harsh statements about its earnings.

Compaq earnings, explanations due (4/20/99) Eckhard Pfeiffer, who was chief executive at the time, blamed the unexpected shortfall in profits on industrywide pricing pressure and slow demand. But disappointment and anger among investors over Pfeiffer's perceived intransigence--and his willingness to write off Compaq's problems as symptoms of industrial malaise--helped exacerbate a simmering conflict inside the company that lead to his involuntary resignation Saturday night. It was announced Sunday.

Pfeiffer to get at least $6 million severance (4/20/99) Ousted Compaq chief executive Eckhard Pfeiffer will receive at least $6 million in severance pay and walk away with close to $70 million worth of stock options that vest as a result of his forced resignation, according to the company's proxy. On top of this, Pfeiffer holds 9.5 million exercisable options, which carry a value of nearly $340 million

Compaq faces indentity crisis -- Inability to manage business models cuts 1Q profits by 50% (4/19/99) Trying to be all things to all customers, Compaq Computer Corp. continues to stumble as it defines the best way to get its products into the commercial and consumer markets.

Compaq execs sold large chunks of stock (4/19/99) More than a dozen Compaq insiders sold a portion of their holdings in the past two months, getting at least partially out of the stock before it tumbled to half its value following the computer giant's announcement that its first quarter earnings would fall far short of estimates.

The man who really holds Compaq's reins (4/18/99) Don't tell Compaq chairman Ben Rosen that board members are complacent: He's been instrumental in replacing two CEOs at the computer giant.

Shareholders sue Compaq (3/13/99) Compaq Computer was named in two lawsuits charging the world's largest personal computer maker with concealing a PC sales slowdown earlier this year, plaintiffs lawyers said.

Compaq CEO gets less stock in '98 (3/9/99) Compaq chief executive Eckhard Pfeiffer received an 18.3 percent salary raise in 1998, but his overall compensation package paled in comparison to what he was  given the year before.

Compaq sees 2000 revenue at $50 billion (2/11/99) "I think my CEO [chief executive officer] believes we are in a good position to become a $50 billion business in 2000," Paul Chan, vice president of Compaq Computer Asia Pacific, told a news conference.

Who really makes PCs? (2/9/99) While you may not have heard of companies like Solectron or Celestica, computervendors such as IBM, Compaq, Apple, Silicon Graphics, Sun Microsystems, and Hewlett-Packard have entrusted much of their business in these companies' hands. Contractors handle virtually all of HP's PC manufacturing.

Compaq buys computers from Taiwan (1/19/99) U.S. giant Compaq Computer said today that it had purchased some $5 billion  worth of computer-related products from Taiwan in 1998 and was expected to buy more in 1999.

Mixed bag for Compaq (1/26/99)  Compaq Computer is expected to report earnings of 37 cents a share         tomorrow, a nickel less than its earnings for the same quarter last year, and 47 cents in earnings per                 share for the year as the company continues to grapple with increased competition, declining PC prices, and the integration of Digital.

Apple settles charges it broke promises over support  (1/26/99) Apple agreed to reimburse customers --who were  charged $35 each time they needed help starting in October 1997 -- and to provide the free                assistance that it once promised for products bought between 1992 and 1996.

Dodging the slings and arrows of configure-to-order sites  (1/20/99) It's amazing the way Compaq and Dell drive customers away from their configure-to-order Web sites. Makes me wonder how they do any business at all.

Apple settles deceptive ads charge (1/26/99) Apple Computer agreed to settle federal charges it deceived   computer buyers by advertising free technical support and then charging a fee for it.

Choosing Internet Access  (1/5/99) ...you can now buy Internet access from regional and                             national providers, too (see "An ISP Sampler"), from telephone companies and cable companies,and even from some PC manufacturers, such as Gateway and Compaq.

PC makers feature new Celerons (1/4/99) Compaq introduced new Celeron machines in both its retail           Deskpro business computers, starting at $1,089, and its direct sales Prosignia line, with prices starting at           $1,299, including a 17-inch monitor. The Compaq machines are available now.

Dell leads the industry, group says (1/8/99) Dell and Sun have been duking it out for the top spot for more than a year in the quarterly rankings by Technology Business Research. Third place went to Compaq...

Computer makers transforming themselves (1/11/99)  Many of the largest PC makers are attempting to     transform themselves into online-based resellers of PCs and PC related equipment and,in the case of                 Compaq, anything else that can be sold over the Internet, in an effort to create a stream of ongoing                   revenue that partially offsets ever-decreasing PC prices.

  Bug record is intolerable, worsening  The software industry’s performance in 1998 was abysmal.

  PC Computing 1998 MPV AWARDS Complete winner list. No Compaq PC Products Selected

Compaq cuts prices up to 7.4% on PC models sold direct to users  (12/16/98)   The Houston-based                     company needed to counter the strength of Dell in the corporate market, especially among small and medium-sized businesses, because it was losing market share.

Compaq's Clout  (11/98)  It recently used its clout...to quash criticism of its products.

  Compaq Throws SMBs A Direct Initiative -- Channel Vendor's new plan poses challenge for small and midsize Business VARs  (12/7/98)  It's possible the company can still generate or even surpass the same channel-based revenue as last year. In a roundtable meeting with VARBusiness editors, Compaq executives were asked if the channel-based revenue next year is expected to at least equal that of this year's. The executives declined toanswer. The company's reticence may  indicate a glum future for Compaq resellers...

Compaq's new plan hurts dealers (11/11/98)  The direct sales effort launched today by Compaq is the latest, and not likely the last, bit of bad news for companies that make their living by serving as the middleman in computer transactions.

  Compaq Hits Back at Dell, Gateway  (9/22/98)  The company said its minitower personal                             computers -- the Presario 5150 and 5170 -- are priced below models with less-advanced features from rivals Dell Computer Corp. (Nasdaq:DELL) and Gateway Inc. (NYSE:GTW).

Gateway Takes On Compaq And Dell  (11/4/98)  Gateway is making a real effort to penetrate the IT                  departments of larger companies

Compaq Pushes Products  (10/5/98)  Compaq Computer Corp., which in the past two years has                           accumulated companies to gradually build out its networking product line, this week plans to launch an initiative that will promote the company's focus on providing end-to-end networks for customers.

Packard Bell to lay off 1,000  (10/8/98)  Packard Bell NEC today said it will lay off 750 to 1,000                          employees working in the company's U.S. operations by the end of the year in an effort to cut costs.

Compaq cuts Houston jobs  (10/7/98)  Compaq let go close to 1,000 manufacturing employees in its                     hometown of Houston this  week as part of the company's plan to streamline operations by 17,000.

Compaq headed for high end  (10/12/98) "With Digital, they bought up a bunch of great technology,"

Report slams PC reliability  (9/24/98)  Computer vendors are not measuring up when it comes to                        shipping computers that work, according to a new report from Windows Magazine. An average of one out of every eight PCs is dead on arrival and can't run the first time a user turns it on, the report said.Overall, users gave Dell and HP top marks for their technology support, while Gateway, Compaq, IBM, and Micron earned marks of "good" technology support from respondents.

(No Direct link available) Unhappy Presario Owner Sues Compaq 07.25.97 (Boot Magazine) 15:13 The                      complaint, filed in the North Carolina Superior Court Division contends Compaq "misrepresented its                  products, breached its warranty agreements and committed consumer fraud."

Compaq weathering transition  (10/12/98)   Still, a complete recovery is far from over. For the same                    quarter last year, Compaq reported earnings of 36 cents a share on less revenue. Compaq also will                    likely continue to incur expenses with the Digital transition. Following the Digital acquisition,                              Compaq announced it would reduce headcount of the combined company by 17,000. So far, only a few thousand workers have been laid off.

Compaq beats Street, barely   (10/14/98)  Shares of personal computer maker Compaq Computer                        moved higher in early trading today after the company announced that it had just managed to                              surpass Wall Street estimates for its third quarter, despite its profits tumbling by 78 percent.

C/NET Survey: Thumbs up, Thumbs Down ( October and November of 1996) Compaq, formerly                           reputed to have excellent service, garnered the most votes for worst PC technical support

Dell leads satisfaction survey   (10/28/98) Dell is No. 1 in satisfying corporate information                                   technology managers, according to a new survey.  Dell took the top spot for customer service in its                     notebook, server, and desktop divisions this quarter, according to the new survey of corporate                           buyers.

IBM, HP top retail PC sales  (10/30/98)   About half of all retail PC sales were in the sub-$1,000                         category last month as IBM and Hewlett-Packard knocked Compaq out of the No. 1 ranking in                           that market segment, according to a  new study.

IT Managers Favor Dell, But Channel  Partners Gaining Ground  (10/26/98) Dell ranked No. 1 in                       all three hardware categories: desktops, notebooks and servers. But channel partners are coming                       on strong. Compaq Computer Corp., Houston, gained 10.3 percent in notebooks, and IBM Corp.                         improved by 7.4 percent in both notebooks and desktops over the second quarter. Once again,                           Compaq was harshly criticized for quality, with IT  managers complaining 10 percent of its servers                     were dead on arrival. While Perron acknowledged Compaq had made dramatic  improvements,                           "competitively, they're still second rate."

  Compaq losing its grip (10/98) Although Compaq Computer has retained its No. 1 ranking in PC                          market share, the Texas giant is losing ground to all four of its closest competitors, according to                          reports released today.

Compaq switches ad agency   (6/98)   "The personal computer market has been rocked by an                             onslaught of PCs priced below $1,000, and Compaq is behind schedule in launching a much                                   anticipated new global ad campaign,

  Testing, Testing  (1998)  From the look of it, many PC vendors aren't adequately testing their                                systems before putting them on the market.

  Technology Business Research, Inc   CORPORATE IT BUYING BEHAVIOR CUSTOMER                            SATISFACTION STUDY 4th QUARTER 1997

  Consumer Alert/Computers.com (C/net 1998) Compaq ain't doing so hot. The company has a huge                       installed corporate customer base, with 37 percent of study participants responding that they have                     bought and/or plan to buy Compaq desktops. Yet Compaq is the only manufacturer among the top                       vendors not to earn an A grade in the server group. "While Compaq receives good grades, there                       are few 'superior' grades in contrast to the other three [Dell, HP, IBM] vendors," the survey                             states. "A few areas where Compaq underperforms its three major competitors include on-time                           delivery, ease of installation/configuration, technical support response, value-added services, and                       total cost of ownership."

  Corporate PC buyers unhappy. (5/98) Quite a few companies recently replaced Compaq products                         with  other brands, according to the study. "With Compaq, the main problems are service, repair                         time, and also reliability and price. "Compaq dropped the most, and in the most categories.

The WINDOWS Magazine Tech Support Survey  (10/98)  Users rate the best-and worst-PC vendors                  on system reliability, service and technical support. Don't buy your next PC without seeing what they                  have to say.     Excellent-Dell, Hewlett-Packard    Good Compaq, Gateway, IBM, Micron                                   Would buy again?  Dell, Gateway top two, Compaq in the bottom five.

New surveys showed PC giant Compaq and direct-sales maven Dell to be virtually even                                       in shipments during the second quarter

Compaq's $10 Billion Headache    Attorneys for Ergonome allege that Compaq copied portions of its                   book, without permission, into a  handbook that Compaq has distributed with more than 20 million                       new PCs since 1994. The company is accusing Compaq of fraud and copyright infringement.

Compaq's Price Cuts Degrading Service.   Some resellers are refusing to service systems because                    of reimbursement problems.

Testing Firm Claims Compaq PCs Aren't Year 2000 Compliant.    A British software company that                       supplies  fix-it tools for the year 2000 problem has reported Compaq Computer to the U.K.                                 Advertising Standards Authority, alleging that the PC manufacturer made false claims about the                         year 2000 compliancy of its machines.

  British Advertising Standards Authority Confirms Year 2000 Readiness of Compaq PC Hardware                      (January 13, 1999)  ASA Rejects Advertising Complaint On All Counts

Windows 98 glitches are driving consumers batty

(Searching for new link) Top computer seller stuck to its plan (8/27/98) In the second quarter, Dell was the                  No. 1 U.S. maker of desktops, with 14.4 percent, edging out Compaq at 14.3 percent, which was                          busily trying to sell stockpiles of unsold PCs instead of making new ones.

Compaq Loses Top Spot as Retail Sales Plummet  (6/30/98) The market share results show who                         was on the balland who wasn't. And Compaq wasn't. Hewlett-Packard jumped into the No 1. spot in                     retail desktop sales.

Dell Still Number One Corporate Desktop PC  (5/5/98)

                  "Compaq [NYSE:CPQ] and Gateway [NYSE:GTW] received  the lowest corporate scores for sales                   during the past quarter. " Compaq fell 10 percent behind Dell in customer loyalty ratings and "was                     generally weaker than all competitors in areas of on-site service, value added services,                                       price/performance and total cost of ownership (TCO)," Perron said, adding the findings were                               consistent with previous findings for Compaq.

Readers' Choice Service & Reliability  (7/98)  (PC Magazine) 

                  Compaq not given an "A" rating for the second year in a row....

                 Winners of Readers Choice Awards:

                 Desktops:    Dell Computer Corp.,  Hewlett-Packard Co.,    IBM Personal Computer Co.

                 Notebooks:    Dell Computer Corp.,  Gateway

                To get a grade of A and thus win a Readers' Choice award, a vendor must be ranked better than                         average on all four of our key questions: satisfaction with reliability, satisfaction with repair                                 experience, satisfaction with technical support, and the number of units that have needed to be                           repaired in the past 12 months (repair frequency).

Compaq's PC Magazine Service and Reliability Ratings by Year

                       7/98-B,    7/97-B,   7/96-A,    7/95-A,    1/95-A,    7/94-A

AOL Cleared of Defamation (6/22/98) The Supreme Court handed America Online a victory today,                     letting stand a ruling that online service providers may not be held liable for defamatory material                       posted on their  systems.

Compaq Expects to Break Even (6/11/98) Compaq Computer Corp. (CPQ) said Thursday that it                         expected break-even earnings in the second quarter and to shoulder through a "transitional" third                     quarter before its now-completed merger with Digital Equipment Corp. (DEC) starts adding to                             earnings.

  Techweb-Digital Glum      15,000 of the company's 54,000 workers being welcomed by Compaq with                     pink slips upon completion of its acquisition of Digital.    "I can understand a 10% workforce                               reduction,  in which you might be focusing on an overlap of administrative type of positions, but a                       30% cut is bound to affect service and support."

  10 Big Myths about copyright explained   It should be noted that the author, as publisher of an                             electronic newspaper on the net, makes his living by publishing copyrighted material in electronic                       form and has the associated biases

Diamond's SupraExpress 56e Dials up to V.90 Specs(7/98)The V.90 standard for 56Kbps                       modems won't become official until this September, but V.90-compliant products are already hitting                   the streets.

V90 Modem Standards (6/98) V90 roll-outs at ISPs should be well underway this summer, leading to                   widespread use of V.90 modems.

AOL WATCH

Compaq teams with Net giants  (6/9/98) One result of such arrangements is that consumers may end up              with fewer choices, critics charge. But companies increasingly are paying each other millions of dollars for        prominent placement.

AOL inks deal with Packard Bell  (6/11/98)  It was the second such announcement this week for AOL, the world's largest online service, which signed a similar pact with Compaq Computer, the world's largest supplier of personal computers.

AOL to settle suit for up to $35 million  (6/11/98)  America Online Inc. said Thursday it would pay up to $35 million to settle a lawsuit over  the aggressive method it used to account for the heavy cost of marketing its online services in 1995 and 1996.

Compaq Gets Hit With Class-Action Suit  The suit reads: "Defendants deliberately and fraudulently mischaracterized their quarterly results and failed to inform the market the true reasons for these results." The suit alleges executives used this inside information and deception to unload stock before the bottom fell out of Compaq's earnings.

Executive Compensation -- From Gates To Skates, Executives Continue To NET Unimaginable Amounts Of Wealth.   Eckhard Pfeiffer, president and chief executive of Compaq Computer Corp., was awarded options that could be worth $71.3 million, up from $24.5 million.

Compaq Sweeps In Desktops  This year's poll showed that Compaq desktops are used at 29                                percent of the small businesses surveyed, 49 percent of midsize companies and 57 percent of large                    corporations. IBM was second with a 22 percent share among small companies, 30 percent share of                    midsize companies and 39 percent of large  companies.

Toshiba Catches Up To Compaq .  3/28/98   Toshiba has rebounded from a nosedive in its retail                              computer market share late last year to draw even with Compaq Computer in February. Both                              companies captured about 29.5 percent of retail unit sales, according to PC Data, which released                        February hardware sales data last week.

Taiwan Key To Cost Cutting For Compaq. 2/15/98  A large share of Compaq's desktop PCs are                         made onan OEM basis by Mitac International Corp. Mitac and fellow Taipei-based First                                     International Computer Inc. make Compaq's sub-$1,000 PC line. The bulk of Compaq's notebook                       PCs are being made by two other Taipei-based companies: Arima Computer Corp. and Inventec                         Corp.

Is Packard Bell Really No. 1 In PC Sales? 12/18/97  Packard Bell's news release painted a picture                    of Compaq in decline and Packard Bell on the rise. Packard Bell said the Intelect ASW data showed                  Compaq losing market share for the past two months, while Packard Bell has been gaining.

Compaq Inventory Woes Continue.   A record 26 percent of resellers reported excess supplies of                        the Houston-based vendor's desktops last month. This topped the previous record of 21 percent in                     March, and is the fourth consecutive monthly increase. As recently as December, this figure was                       only 1 percent.

Notebook-PC Inventories -- Percent Of Resellers Citing Each Choice 5/25/98

Dell Keeps Soaring With Another Record Quarter -- PC Vendor Says It's No. 2 In Revenue 5/28/98

    Compaq Retreats From AOL  (5/19/98) Beginning May 18th, Compaq will begin the process of                              migration to our new Support Forum area on the web (http://forum.compaq.com).  After the 29th                          Compaq’s message boards on AOL will be discontinued entirely.

 SHAREHOLDERS SUE COMPAQ  (Published on 04/21/98, ST. PAUL PIONEER PRESS*)  Compaq                     Computer and several top executives were sued by shareholders who claim the company misled them                   and artificially inflated the stock price while the executives were selling their shares. The suit, for                       which class-action is sought, was filed in U.S. District Court in Houston and seeks unspecified                             damages for the plaintiffs.

    COMPAQ CHIEFS CASHED IN ON RISE(Published on 11/02/96, SAN JOSE MERCURY NEWS *)                    Compaq Computer Corp. officers sold as much as $14.85 million in stock as the company's shares                        neared  record highs and just before concerns about a disappointing holiday season hammered                            computer-related stocks. The sales came as analysts question whether personal computer                                    makers can continue posting the robust earnings gains they've shown this year, which were driven                      mostly by falling component prices.

 TOUGH CEO DRIVES COMPAQ VERY HARD (Published on 01/11/98, CONTRA COSTA TIMES*)                  (HOUSTON - When Eckhard Pfeiffer's new all-wheel-drive turbo Porsche suffered a small scratch on                 its underside while in the dealer's care, the Compaq Computer Corp. chief demanded a new car. The                   Porsche dealer told him the waiting list was two years long. Pfeiffer wasn't bowed. Three days later,                   Porsche headquarters in Stuttgart, Germany, called the dealer to say a new car was on its way.                           Pfeiffer  had called the chief executive officer of Porsche himself.

 LEXMARK TO MAKE COMPAQ'S PRINTERS--MACHINES WILL GET COMPAQ'S NAME                       (Published on 05/19/98, LEXINGTON HERALD-LEADER*)  In a move that could greatly increase its                     share of the burgeoning color inkjet market, Lexmark International will manufacture printers for                       PC giant Compaq Computer Corp. The company is expected to formally announce the agreement                       today.  Production is already under way.

   Top 20 Power Desktops /PCWorld (April 1998) NO PRESARIOS SELECTED

   Top 20 Budget Desktops /PCWorld (April 1998) NO PRESARIOS SELECTED

   Top 10 Notebooks /PCWorld (April 1998) NO PRESARIOS SELECTED

Top 10 Home PCs /PCWorld (April 1998) NO PRESARIOS SELECTED

   Compaq gives away computer monitors to business customers (3/18/98) Compaq Computer Corp.,                          trying to lift sagging sales of business computers, today said it would give away monitors and cut                        prices of  commercial desktops by up to 11 percent

Compaq Woes: The Story Behind the Story  (3/10/98)  Late last week Compaq [CPQ] -- the world's              leading PC manufacturer -- stunned Wall Street with an earnings warning -- and it wasn't just a blip. Instead of an expected $500 million Q1 profit, Compaq says it will make $0.00 in Q1. Even for a huge outfit like Compaq, half a billion bucks isn't a simple rounding error.There's resistance to change in the Compaq culture. The Wall Street Journal reports that Compaq's sales and manufacturing people are slow to go where the generals  order them. It's reminiscent of what happened during Compaq's last upheaval back in '91. There was so much resistance to change the board had to fire a cofounder.

Compaq's brass faces its biggest test in years  (3/10/98)  Compaq, which since stopped delivering new          products to its resellers, is saddled with a problem that's been a half year in the making. After building up        inventories in late 1997 and early 1998, the company discovered to its dismay that sales were not growing as fast as anticipated.

  Dell hits Compaq with price cuts, new models (3/9/98)  Compaq's shares fell 2 7/16 to 25 3/16 in late           trading and have fallen 30 percent in the past three weeks.

Compaq is vulnerable  (3/7/98)   CEO Eckhard Pfeiffer, who has some explaining to do, gets an "A" in creative  writing by laying the blame on "stiff competition" in the company's North America commercial business. Left unsaid was the embarrassing admission that Compaq's vaunted forecasting system had blown a gasket and failed to accurately gauge demand.

  The Mootly Fool Interactive Message Board ,Compaq Computer Corp. (CPQ)

  What is the Software Money-Back Guarantee?   (3/98)  The Software Money-Back Guarantee petition is a campaign to compel software makers to stand behind the products they sell.

   Compaq: Trouble ahead  (3/9/98)  Compaq Computer Corp. said on Friday it expects its first-quarter earnings to be far below what Wall Street was expecting because of weak personal computer demand and plunging  prices.

     Best Products of 1997--PCMagazine      NO COMPAQ COMPUTERS SELECTED

    Compaq adds to bleak news on tech front (3/7/98) Compaq Computer Corp. on Friday warned that                        flat computer sales and price wars would wipe out its profit in the current quarter.

    Top 20 Power Desktops (2/98-PCWORLD)  NO COMPAQ PRESARIOS RECOMMENDED

     Top 20 Budget Desktops  (2/98-PCWORLD)  NO COMPAQ PRESARIOS RECOMMENDED

      Top 10 Notebook PCs (2/98-PCWORLD)   NO COMPAQ PRESARIOS RECOMMENDED

   Compaq ousts IBM from RadioShack  (1/28/98) Under the terms of the deal, Compaq will market a                    line of its Presario computers through RadioShack

   Compaq Becomes an Enterprise Vendor (1/98) The long-range plan is to integrate and rationalize                        Compaq and Digital’s PC lines, we’d hope Compaq does this thoughtfully. Digital customers, after all,                 could have  chosen Compaq in the past and didn’t. In order for Compaq/Digital to retain them it will have           to remain appealing.

    FORBES: Company of the Year-- Compaq (1/12/98) When venture capitalist Benjamin Rosen engineered the ouster of founder Rod Canion and his replacement by Pfeiffer, Compaq was in crisis. A company that had grown accustomed to a comfortable 35% gross profit margin was under siege from price-cutters like Dell and AST Research.  Pfeiffer found a way for the company to live on a 27% gross margin. He slashed prices, making up for the lost revenues by firing nearly a quarter of the work force, or 2,700 employees, and boosted the number of resellers handling Compaq's PCs. Sales responded, climbing from $4.1 billion in 1992 to $7.2 billion in 1993.

     Compaq's Chief Is Ousted: Co-founder gets ax amid huge losses and layoff plans (10/26/91)

    Compaq To Buy Digital For $9.6 Billion The Houston-based company "put tremendous value on the                    customer relationships Digital has cultivated over the past 40 years," said Eckhard Pfeiffer

    Compaq acquisition centers on service, growth  (1/27/98) "It's a huge risk," said Gens of what he                        sees as Pfeiffer's goal of doubling revenues within the next five years. In order to do so, Compaq is                    trading profit margins - which amounted to 8.4 percent last year - for the potential of growth

     Compaq's 1997 Revenue and Earnings Set New Record

                 "Our outlook, despite weakness in Asia, calls for a strong 1998," said Pfeiffer. "We're confident                        that Compaq will be well-positioned to continue to accelerate market share gains and improve                             profitability. Customers are increasingly relying on Compaq to provide the most innovative,                                 cost-effective and flexible products to meet their computing needs."

      Compaq Shatters the Value Equation with Broad New Presario Line  (1/6/98) "For technical                                 support,  Compaq has added a new remote access program, specially loaded on all Presario home                       PCs, that enables Compaq technicians -- with the consumer's permission -- to  remotely access the                     PC to troubleshoot, solve software problems and diagnose hardware issues.  All new Presario                             models will  also ship with a Selective QuickRestore CD, giving users the ability  to restore                                 individual preinstalled software"

                   (Compaq appears not to offer a Compaq Phone Center on these newly released models...Sony is                         reported to have had the remote access program for over a year...)

     CLASS ACTION LAWSUIT AGAINST PACKARD BELL NEC

    New tag for Summit--Compaq Computer purchases naming rights  (10/9/97)  ("Compaq Center...will                        cost  the personal-computer giant $900,000 annually for six years)

    Compaq going `out on a limb' with AMD chip  (12/3/97) (last quarter, only 15 percent of AMD's                                233-megahertz K6 chips that came off the assembly line were usable)

     Compaq Launches Direct PC Sales over Web in US    (10/14/97)  ("We don't need to be direct to                        beat direct," as stated by CEO Eckhard Pfeiffer in April. That tune abruptly changed this week)

     IN PCS, IF YOU'RE NOT A TOP PLAYER, YOU'RE NO PLAYER AT ALL   (11/10/97)  (Compaq,                   Dell, and Hewlett-Packard. Each is growing faster than the overall industry and seems to have                            mastered the art of thriving with gross margins of just 22% to 25%, down from 40% or more a few                    years ago) 

    Log on and litigate   (12/1/97)  (Forbes article on class action suits, the internet, & Compaq )

     Big Pc Makers Rate Low   (11/4/97)  (Compaq Computer, finished last among a dozen companies in                    Home PC magazine's annual reader survey) (11/4/97)

   Winners And Losers In '96   (1/27/97)  (these {build your own}systems continue to outsell the top five                  vendors put together

   Revving Up -- Race of the Fast Modems (2/1/97)  (56k modem is not so much a new product as an                     existing one-a V.34 modem-tricked into higher data rates by a bit of new PCM software.)

  Compaq's Executive Exodus (2/3/97)  (...managers are given two quarters to meet hefty sales goals.                   Those  that don't, walk the plank. Four of Compaq's top executives and at least 10 of its middle                            managers have  resigned.)

  Cyrix, AMD Ready To Battle MMX  (2/3/97)  (Gx won't be compatible with Intel's MMX extensions)

  Compaq to increase Taiwan purchases (3/17/97)   (In the early and mid-1990s, the company, citing                      competition and quality-control issues, would not procure complete systems from rival Taiwan                             companies. But as competition in the PC market heated up, Compaq was pressured into reducing                       product costs and cycle times, leaving it little choice but to procure complete systems from Taiwan                     vendors.)

  Wintel woes keep landing in our laps  (6/16/97)  (So, I may be mad as hell but there's not much I can do               about it except to keep on rebooting, reinstalling and reconfiguring. Armada 4100 laptop family from                 Compaq Computer Corp. (Houston) has suffered a rash of quality problems)

  Two Dip Into Lucent's Chips  (1/20/97)  (Compaq and Hayes Microcomputer Products Inc. will both                     ship products containingLucent's 56-kilobit-per-second modem chips by the end of March)

  Acer Advocate(12/1/97)(sells more Acer desktops than Compaq desktops- by a margin of three to one)

  Compaq To Market First MediaGX-Based Notebooks And Desktops  (12/3/97)(Compaq has told                         partners a majority of its consumer notebook PC sales next year could be non-Intel-based)

  Compaq Reengineers Again!  (5/15/97)  (CEO Eckhard Pfeiffer maps out his aggressive plan to push                   the company ahead, promising to take the value-added channel with it.  That is the enormous value in                 the Compaq brand built over 15 years. It is solid , it is compatibility, it is quality of product)

  Compaq's Rosen Cashes In(5/29/97)(cashed in options on more than 160,000 shares of company stock)

   PC World Online Article "If It Ain't Fixed, Sue It" (7/15/97)  (suing Compaq for allegedly selling                       defective  products and charging fees when customers requested help in correcting the problems)

    News Archive/Tues 7/15/Presario Users Sue Compaq (Real Audio download/Tues 7/15)

     Bargain Hunting for 56K Modems  (8/7/97)  ("...these devices really don’t work very well.")

    Gadfly sues 56K modem makers  (4/17/97) (Compaq sued as part of class action)

    Saints and Sinners: 1997 Year In Review  (12/97) (Compaq commits major blunders in 1997)

    CNET TOP FIVE NOTEBOOKS  (12/3/97)

    CNET TOP FIVE PCS--Home and Business  (12/3/97)

    Why You Won't Get 56K   (12/3/97)  ("...little more than wishful thinking...")

    56K Standardizing Efforts (12/3/97)("56-kbps technology doesn't even come close to achieving this goal")

    56K MODEMS (11/1/97)  (In situations that slowed many of the other modems to a crawl, the external Courier V.Everythings held onto rates above 35 kbps--the highest in our tests. Turning on compression produced 89-kbps speeds. Both Courier V.Everything products were far and away the fastest analog modems we tested and line impairments weren't much of a bother. No matter how hard we tried, we couldn't get these modems to drop out or fail to connect. We clocked analog performance for the external unit at 31.3 kbps--again, slightly better than the internal version.)

     High-bandwidth alternatives   (12/3/97) (Cable, satelite, ISDN, xDSL, T1)

     Intel and Cyrix duel for MMX (8/26/96) ("Cyrix believes it has a legitimate right to use the MMX                     name")

    Confusion Over Modems is Hurting Sales  (11/23/97)  ("you're lucky if you're getting a connection in                 the 40s")

     Packard Bell reaches $5 Million Settlement  (9/6/96)   (""Compaq filed a lawsuit against us for false                           advertising back in April 95, but the case blew up in their face," said Marshall Grossman, an attorney                                representing Packard Bell. "In their lawsuit, they said they allow resellers to put used computers back in                    new boxes without retesting them."

    Compaq Blows Away Q4 Expectations   (1/22/97)  ("considerable gross margins improvement")

    Pfeiffer Takes Direct Approach   (4/11/97)  ("...company's new build-to-order strategy...")  

    A few words from Eckhard Pfeiffer, President and Chief Executive Officer, Compaq Corporation

     Presario:  That Dog Don't Hunt No More  ("maybe it's time we put a merciful .30-06 slug through its tired                    old CPU") (12/1/96)

     Compaq's Pfeiffer blasts direct model competitors (11/17/97)("Dell and Gateway are offering very                      little in terms of service and support," Pfeiffer said)

     They're All Copying Compaq (11/25/96) (Compaq is changing from being just a PC company to                            having several core businesses, and now Pfeiffer wants to operate in a more chairmanlike way, with                    junior Eckhards running each business)

     WHY COMPAQ ENVIES DELL  (2/17/97) (it's overhauling its sales strategy in order to do the                          unthinkable: be more like Dell)

      Can Compaq continue to soar?   (6/23/97) (Compaq has been linked to a trio of intriguing                                       acquisitions--all of which fell through)

     COMPAQ COMPUTER CORPORATION Hoover's Company Profiles

    Company snapshot

     Compaq -- Company Background

     Problems dog Compaq Deskpro 2000 PCs, ProLiant 6000

    Compaq's problematic LTE 5000 notebook is still bugging users

    COMPAQ PRESARIO LAPTOPS - A Bad Choice?

     Compaq Moves Production to Singapore (makes 58% of circuit boards there)

    Batteries Sap Patience ("Vendors not creating a sufficient battery...")

    Big-Name PC Makers Move Slowly on Cyrix 6x86MX Chip (No major takers for Pentium II competitor)

    What's Innovative About Cyrix Chip?  (The Cyrix 6x86MX microprocessor line introduced today reflects                   the high level of technological innovation that permeates today's esoteric world of CPU design.)

     Proposed Settlement of Lawsuits with Intel  (Intel has agreed to provide a $50.00 rebate on the purchase                   of  certain Intel OverDrive® processors to Settlement Class members who purchased a PC containing a 120                     MHz or a 133 MHz Pentium® processor between October 23, 1995 and January 5, 1996. )

    Compaq Receives 1997 Texas Quality Award   ????????????????????

    Compaq Computer and John Deere Company Receive 1997 Texas Quality Award

    Presario, IE 4 Not Compatible 

    Market place: 4 computer makers dominate corporate PC market

     The Texas Tremblor Hits Again

    New Stuff: Let the Buyer Beware  

    Computers: Those Machines That Sometimes Almost Work

    56k Modems Not Quite Up to Speed

    Bargin Hunting for 56K Modems

   The 56K Modem Myth

    Lucent Technologies demos 56 kbps modem technology; Compaq and Hayes to use in new products

   AOL Networks announces field trial of Lucent and Rockwell K56flex modem technology

   Users Lose in 56-kbps Standards War 

   Firms Line Up for 56-kbps Chips 

    "BAD SOFTWARE"

   Compaq Settles Fraud Case   (Used computers sold as new)

   Compaq Recalls Adapters

   The Evolution of Compaq

   Cyrix  Sued Over Advertising 

   Rockwell Hits Snag on 56 kbps

   Creative Gets Ruling Against Cyrix 

   Creative Suit Against Cyrix Fizzles 

   Compaq to Deploy 300-MHz Chip  

   Short Take: Compaq Exec Resigns    

   Analysts Bullish on PC Market 

   AMD Struggles to Keep Up    

   Now Everyone in PCs Wants to Be Like Mike

   Gartner Puts Compaq Notebooks on Problem Watch

   Personal Computing -- The New PC Team -- Compaq integral part of the Microsoft-Intel platform

   Say Hello to a Whole New Compaq

   Compaq straightens up and flies right

   What's That Sucking Sound?

   Compaq's new BTO system breaks down

   Compaq CEO Made $4.25M Last Year

   Compaq Quest: Dells Victories Set Off Alarms

   Compaq is a Ripoff

   Compaq New System Breaks Down

   Compaq will stop providing boxes to dealers    

   No More Free Support?

   Good-Bye to Good Support

   The Death of Free Support

   Easing Up on Fees?  

  Your Take On: PC Reliability, Service, and the Almighty Dollar

   Just In Compaq Ends $35 Support Fee

   Letters Corrections Clarifications 2100 CPU Speed

   PCW ADVOCATE:    No Credit, No Counsel

   Breaking News TIDBYTES: Suing for Support:

   Compaq Moves to Cut Product Costs With Revamped Design, Delivery Plans

   Compaq's Bold New Strategy  

   Compaq Monitor Size Fraud Class Action  (monitor size fraud on purchases from 5/1/91-5/1/95)