vic--- been too slow... we want to try and get a head of the curve,"
(REUTERS) Pricing, not demand, seen key in Compaq problems
Pricing, not demand, seen key in Compaq problems
By Duncan Martell
SAN FRANCISCO, April 18 (Reuters) - The shock resignation
of Eckhard Pfeiffer, president and chief executive of Compaq
Computer Corp <CPQ.N>., raises the question: were the problems
at Compaq specific to the company, or is overall demand for
personal computers waning?
According to industry executives, money managers and
analysts, the bulk of the blame falls on Compaq. They said
demand was still strong but the prices manufacturers could
charge were falling fast.
"The board isn't going to go fire the guy if the market is
weak, so it just affirms that the bulk of the problems rest
with Compaq," said money manager Duane Eatherly with BancOne
Investment Advisors.
But while unit shipments of PCs remain strong, falling
prices are causing consternation -- and lost profits -- to PC
makers.
"Making a living in the PC business takes a lot more
intelligence than it used to," said a top executive at a PC-
technology company. |
