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Compaq under increased threat from direct vendors – now official

Market research companies confirm Pfeiffer's worst fears - he's in for a haircut

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IDC issued figures on Friday showing that Compaq is under increasing pressure from direct vendor Dell, but is also being threatened again by HP, quasi-direct vendor IBM, and even Gateway. The latest figures from IDC, show that Pfeiffer's outfit lost four points to opposition in the US. That will lead to fears from Compaq shareholders that the twin acquisitions of Digital and Tandem are taking their toll. While still number one in the US, Compaq figures, according to IDC at least, are showing slippage, with companies like Gateway rushing to take advantage of the unique situation in the PC market. Last week Gateway said it had shipped over 820,000 PCs in its third quarter. Western European demand figures are keeping up with the USA, according to IDC. But as reported here last week, Dell is shipping a huge quantity of PCs from its Limerick plant, while IBM is taking steps to ditch large swathes of its direct model. ® Related Stories Big Blue server division does huge channel turn around The great satan of hardware called Dell..Limerick Click here for more salutory lessons

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