However, Compaq stood by its numbers. "This is not with just
one isolated SKU, but basically across the entire [desktop]
product line where we have been able to eliminate what was once
the sacred cow of the direct channel -- that they were at more
competitive prices than the indirect channel," said Michael
Takemura, Compaq's product manager, North American desktop
marketing.
All vendors, including Dell, said street prices from the indirect
vendors and list prices from direct vendors are not the same as
those quoted in competitive bid situations. Nevertheless, Dell
and other direct vendors have used those published numbers to
shore up the perception that their prices were lower, according to
channel and vendor executives.
Because of the special bidding practices for large-account deals,
Jacques Clay, vice president and general manager of HP's
Extended Desktop Business Unit, Personal Systems Group, said
HP never has been at a pricing disadvantage against Dell in big
deals. But street pricing is now in parity with Dell and shows
that any cost efficiencies gained from supply chain re-engineering
both from HP and the channel are being applied to lower prices,
he said.
And IBM said savings realized from its new Advanced
Fulfillment Initiative, with its emphasis on channel assembly, is
the reason for its more aggressive pricing. |
