Feeds

Compaq takes further direct step

Channel likely to be absolutely livid

  • alert
  • submit to reddit

High performance access to file storage

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

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.