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Distributors cut to quick by Compaq

From 39 down to four US disties

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Compaq will slay most of its US distribution channel, leaving only a skeleton crew of four. The PC heavyweight announced it would keep only Ingram Micro, TechData, Merisel and Inacom, according to today's Wall Street Journal. The move, effective from 1 August, will address the tangle of 39 US distributors which Compaq partly blamed for its poor first quarter figures. Analysts said the reductions would help Compaq seek better terms from the remaining distributors, according to today's Financial Times. They added that the streamlining would also give Compaq a clearer picture of demand. Two months ago, Compaq gave Tech Data and Ingram Micro permission to final-assemble and distribute its Prosignia range of PCs for small businesses. At the time, it said the authorisation would be extended to Compaq's entire commercial PC products. ®

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