Compaq (NYSE:CPQ)-small firms to spark sales growth
Reuters, Thursday, March 19, 1998 at 07:31
HANOVER, Germany, March 19 (reuters) - Compaq Computer Corp
(NYSE:CPQ) said on Thursday it was launching a world-wide offensive
to capture a large share of the fast-growing market for PCs for
small and medium-sized business.
Compaq said that market is increasing 18 percent a year and
that it aimed to grab 20 percent of the business by the year
2000, chief executive Eckhard Pfeiffer said at a news conference
at the CeBIT trade fair.
By packaging products, financing, help services and
electronic commerce advice for small companies, Compaq expected
its sales to these customers to reach $16 billion, he said.
"Our strategy is to offer tailored, integrated computing
solutions that will help these companies compete in today's
global marketplace," Pfeiffer said at a news conference.
As part of its "Entrepreneur Solutions" programme, Compaq
unveiled a new portable PC and a server loaded with software for
small companies. It also introduced low-cost networking products
and said it would release a handheld PC designed for travelling
business people.
Along with these products, it said it would offer special
leasing and financing options, and telephone support where
customers can get help setting up products from Compaq and other
suppliers.
It would also work with Inex Corp to pre-load Compaq servers
with Inex software that small businesses can use to set up sales
sites on the Internet.
Compaq said the small business segment would make up more
than 50 percent of the total PC market by 2000, and would play a
major role in its effort to lift sales to $50 billion in two
years from $24 billion in 1997.
It would also work with the dealers who sell its PCs to end
customers to set up Internet sites to provide the customers with
product information, technical support and opportunities to buy
PCs on-line.
Compaq, which recently forecast first-quarter results well
below estimates, does not sell PCs on-line itself, although
rival Dell Computer Corp (NASDAQ:DELL) uses the Internet to ring up
about $4 million a day.
frankfurt.newsroom@reuters.com)) |
