To all:
I don't know if this news item was already posted on this thread, but here it is anyway:
Friday March 6, 6:38 pm Eastern Time
Company Press Release
Computer Reseller News Reports High Product Inventories At Compaq
And IBM
Excess Stock Contributed to Compaq's Earnings Warning
MANHASSET, N.Y.--(BUSINESS WIRE)--March 6, 1998-- Compaq Computer Corp. [NYSE:CPQ - news] and
possibly IBM Corp. are grappling with excess inventory as these vendors continue to migrate to a channel-assembly business
model, according to CMP Media's Computer Reseller News.
In Compaq's case, the situation is so severe that the company today issued a warning to Wall Street that it would not meet its
first-quarter sales and earnings expectations. To reduce its distribution-channel inventory, Compaq said it will put in place price
reductions and promotions.
In a story posted on its Web site (http://www.crn.com) today, Computer Reseller News reports that Compaq has 20 times
more Pentium and Pentium Pro desktop-PC inventory than Hewlett-Packard Co. [NYSE:HWP - news] and five times that of
IBM Corp., according to spot-checks of seven distributors' online systems. More specifically, Pentium and Pentium Pro
desktop-PC inventory from the spot-checks indicate HP has approximately 9,500 units in stock while IBM has 46,000
desktops. Compaq, by comparison, has 200,000 units.
The inventory pileup comes as Compaq and IBM are offering the channel quarter-end buy-ins again, distribution-channel
executives said, adding that Compaq's program is the most aggressive. HP was not offering buy-ins, channel executives said.
In addition to its online reporting of the excess-inventory story, prepared by Joe Wilcox and Christina Torode, the technology
newspaper will publish a full report in its March 9 issue.
Published by CMP Media Inc., Computer Reseller News has a circulation of more than 115,000 and reaches readers with the
product trends and industry news needed to sell comprehensive technology solutions. The publication's news coverage is also
available via e-mail through CRN Direct. This free, customizable daily newsletter -- available in both text and full-HTML
formats -- allows users to choose up to 20 companies, products and trends to track. Registration for CRN Direct is available
through CRN Online (http://www.crn.com). |
