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Mitac to start selling online

Knee-jerk reaction to Compaq cuts

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Major Taiwanese manufacturer Mitac is to open up an e-commerce division, selling its PCs and notebooks direct, worldwide to any takers. The local press in Taiwan is reporting that Mitac's move could be a reaction to a decision Compaq made in recent days to demand 15 per cent price reductions from its manufacturers on the island. Compaq itself is going direct and wants to maintain its margins, such as they are. Mitac was a major manufacturer of Compaq kit but two days ago, a press agency in Taiwan reported that it, and FIC, were victims of a new deal the Houston company made. Q-Run has secured a major contract from Compaq to produce 200,000 sub $499 machines, almost forcing Mitac's hand. ®

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