Retailers Say Compaq PCs Are In Short Supply
(02/27/98; 4:12 p.m. EST)
By Roger C. Lanctot, Computer Retail Week
Rumors of excess product held in inventory by
distributors knocked nearly $2 off the value of a share of
Compaq Computer in the past two days, but retailers said
they would like some of that inventory.
A report on the Reuters newswire late Thursday quoted an
analyst at Salomon Smith Barney who speculated that
Compaq was seeing an increasing inventory position and
had begun "negotiating with the channel" to take on
additional inventory. A Merrill Lynch analyst,
meanwhile, said its own channel checks indicated strong
product sell-through, according to Reuters.
Retailers said it has been known for weeks that Compaq
cannot make enough Presarios. "Anything they could give
me I would gladly take," said one merchandise manager
for a national chain who asked not to be named.
"Hewlett-Packard PCs are smoking right now and
Compaq isn't far behind. We can't get enough of either."
Ten retailers contacted by Computer Reseller News
confirmed Compaq has been chronically short of Presario
PCs for months while the company's retail sales and
market share have surpassed all competitors. Some
retailers suggested the addition of RadioShack, which
Tandy said is supposed to be up and running with Compaq
computers by the end of March, has contributed to the
shortfall. But other retailers said they have seen no
appreciable change in the product shortage since the
RadioShack deal was announced.
"Since they cut the deal with RadioShack, it's been almost
impossible to get product," said one merchandise manager
who asked not to be named.
Retailers said Compaq is short of systems throughout its
desktop line and also has insufficient supply of notebook
computers. Most said they expect the problem to go away
in about two months when Compaq ships its new line.
Retailers said IBM and Packard Bell NEC have sufficient
product to supply their existing accounts and are willing
to produce more computers as required. For Compaq and
Hewlett-Packard, though, there appears to be no
additional production capacity available. Neither Compaq
nor IBM were available to comment. |
