Feeds

Compaq stagnates in Q1

Picks up after that

  • alert
  • submit to reddit

The essential guide to IT transformation

Compaq CEO Michael Capellas forecasts zero growth for the company in Q1, and overall growth for the first half of 2001 of 5 per cent - half of the 10 per cent achieved in the same period last year.

Capellas made the predictions in an interview with Der Spiegel, the leading German news magazine. Certainly, they are not out of line with consensus analyst forecasts of 6-8 per cent for the full year.

Last week, Capellas told Sunday Business, a UK newspaper that he was comfortable with analyst forecasts, while hinting strongly that he anticipated growth at the upper end of the range.

In the Der Spiegel interview, as reported by Reuters, Capellas said the 'classic' PC industry was 'gradually becoming the "Old Economy" of the information technology sector. "Our task in the future will not be to put cumbersome boxes on people's tables," he said. (Doesn't it have resellers, disties and retailers to do this?)

At some point in the next few months, analysts expect Dell to overtake Compaq as the world's biggest PC maker. Compaq disputes this - it counts iPaqs as PCs. But judging from Capellas' comments, it looks like the company will cheerfully cede top dog status in PC box shifting.

Compaq always has huge margin-fat business in storage systems, servers and services to fall back onThis will play well with Wall Street. But what about Compaq's corporate heartland - the companies that buy Compaq for the same comfort blanket reason they used to buy IBM?

De-emphasise low-margin PCs too much, and Compaq risks throwing out the baby with the bathwater. ®

Related stories

Reuters: Compaq sees sales slowdown
Dell plans big layoffs - Client Server News
Capellas puts the fun back into Compaq
European PC market hit by soft Euro
Compaq suffering iPAQ
Compaq hits reduced Q4 targets

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?