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Technology Stocks : Compaq

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To: Night Writer who wrote (60802)5/7/1999 5:01:00 PM
From: Elwood P. Dowd   of 97611
 
Make Anncmt Next Week !!!
by: gjmarinc
74988 of 74989
May 7, 1999
Dow Jones Newswires
Compaq - DLJ -3: Compaq To Make Anncmt Next Week
Dow Jones Newswires

Compaq plans early next week to make an announcement about its U.S. distribution
strategy, said spokesman Alan Hodel.

"Compaq has been in discussions with our U.S. channel partners to maximize and
enhance our distribution model," he said. "We expect the discussions to lead to
refinements in that model that will benefit Compaq, our channel partners and our
customers."

Compaq will make an announcement at noon EDT, a Tech Data spokeswoman said.
She said the webcast will be available through the Tech Data and Compaq Web sites.

A spokeswoman for Ingram Micro said simply, "Stay tuned."

Officials at Merisel and Inacom had no comment.

Compaq has been struggling to improve its distribution system to better compete with
Dell Computer Corp.'s (DELL) more efficient direct-sales strategy.

Recently, Compaq has been criticized for offering the same products at different prices,
depending on where they're sold - through the Internet, traditional retailers and resellers,
or direct sales.

In his note, DLJ's McCarthy said the co-location strategy to be announced by by
Compaq, dubbed "U.S. Alliance," "is emerging as a successful formula for improving
the inefficiencies of indirect distribution."

Under co-location, McCarthy said, there is no field inventory, and distributors can
provide configuration services at the place of order, leveraging third-party products to
drive higher "revenue attach rates."

- Anthony Palazzo;

Posted: 05/07/99, 4:45PM EDT as a reply to: Msg 74987 by gjmarinc
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