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Digital Unveils Low-Cost Pentium II Line

New PC 3500 line features $1375 Pentium II-233 system with 32MB of RAM and a 3.2GB hard drive.

With the future of its PC business unit uncertain pending its acquisition by Compaq, Digital is pushing full-speed ahead into the commercial desktop marketplace with a new line of Pentium II-based PCs.

The PC 3500 line of low-cost Pentium II systems will round out Digital%squots value PC segment. The PC 3500%squots base configuration offers a 233-MHz Pentium II processor, 32MB of RAM, and a 3.2GB hard drive for $1375. At the high end, a machine with a 300-MHz Pentium II, 64MB of RAM, and a 4GB hard drive will cost $2205.

Even though the company is proceeding with on PC plans, concerns over the redundancy of its products--given Compaq%squots leadership position in the PC market--could dampen sales.

%dquotThere is definitely some overlap between the two companies in the PC business,%dquot said Roger Kay, an analyst at International Data Corporation.

Digital officials, however, insist it is business as usual.

%dquotWe have in some areas complementary products and in some areas we have innovative products,%dquot said Denny Lane, director of business management and operations for the desktop group at Digital. %dquotThe future is always uncertain, but right now we are competitors and we are moving forward on our products.%dquot

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