Feeds

Compaq takes further direct step

Channel likely to be absolutely livid

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Compaq will infuriate its channel in the middle of this week when it introduces a range of low-end desktop PCs sold to customers directly by its own sales staff. And the boxes may well be built by third parties, giving rise to fears of further job cuts at Compaq manufacturing plants worldwide. The move will mark a further step in Compaq's plans to slim its model to match Dell and follows reports, exclusively revealed here, of IBM's move to a similar channel model. Eckhard Pfeiffer, CEO of Compaq, will announce the plans to an audience in the US on Wednesday and will try to justify the u-turn by pointing out the slenderness of margins. It is also expected to announce that it is going to sub-contract some of the manufacturing of the desktop PCs to so-far unnamed third parties. That is likely to give rise to fears of further job cuts in the Compaq manufacturing superstructure. While Compaq's UK channel is likely to have the ability to sell the low end, slender priced boxes, the margins will discourage them from so doing. The boxes will be sold through Compaq's Glasgow call centre in this country. Compaq UK was unable to comment on the reports at press time. ® Related Stories Big Blue goes direct and claims Compaq has followed Compaq launches retail build to order scheme Dell stalks Compaq Vendor franchises margin on the ridiculous Compaq cherry picks the SMEGs

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.