NEW DESKTOP COMPUTERS DEBUT ALONG WITH FASTER-CHIP LAPTOPS.

Byline: Evan Ramstad Associated Press 

Compaq and NEC introduced new desktop computers, while virtually every major manufacturer adopted a faster chip for laptop models as springtime revisions by personal computer makers hit a peak Monday.

Compaq, the leading PC maker, rolled out 35 new models aimed at business and government customers. It set the industry on edge Friday with a decision to lower profits to maintain faster sales growth than competitors.

The move came as the PC industry is seeing slower growth than it did a year ago, but ultimately it may be more harmful to competitors that have higher costs than Compaq.

While Compaq cut prices on existing models and accessories such as monitors and extra memory chips, its pricing for the new models was not as radical as might have been expected from the reaction to its announcement Friday. Upset by the loss of short-term profits, investors sold shares of Compaq and other PC makers in droves.

The company will sell models that use Pentium 150 MHz and 166 MHz microprocessors in a range from $2,685 to $3,425, excluding monitors. New models with the same chips but more features in its flagship Deskpro line will range from $2,819 to $3,579.

All of the new models have bigger hard drives, faster internal data paths and a relatively new kind of memory chip to work with.