Comments by Pfeiffer regarding Dell, the Internet, and CPQ plans/possible announcements on E-commerce...
John
Dow Jones Newswires -- September 23, 1998
Compaq CEO Pfeiffer: Leading Dell On Internet
Access
By CHRISTOPHER BOWE
Dow Jones Newswires
CHICAGO -- Dell Computer Corp.'s (DELL) plan to give computer buyers easy
access to the Internet is lagging behind the times, said Eckhard Pfeiffer,
president and chief executive of rival Compaq Computer Corp. (CPQ).
"We are way ahead of that game," Pfeiffer told reporters after a speaking
engagement here Wednesday.
Earlier in the day, Dell announced its Dimension desktop computers would have
a direct connection to the Internet, using AT&T Corp. (T) as an Internet service
provider and Excite Inc.'s (XCIT) search engine.
Speaking at an Executives' Club of Chicago luncheon, Pfeiffer said one of
Compaq's key strategies is to fine-tune its computers' one-touch Internet access
to become a dominant technology services and Internet point-of-entry site, or
portal.
Part of that strategy would center on the AltaVista search engine acquired in
Compaq's buyout of Digital Equipment Corp. in June, Pfeiffer said.
By fusing AltaVista with Compaq's personal computer business and other
technology services, the company hopes to lead the charge into the concept of
the completely wired, or networked, home.
A key announcement on Compaq's Internet strategy is forthcoming, Pfeiffer said.
The basis for the strategy is that a family that purchases a computer would have
instant access to the Internet and electronic commerce services.
E-commerce is one of the most important priorities that Compaq is dealing with,
Pfeiffer said.
Compaq generates more than $6 million a day over the Internet, he said, but the
electronic business medium is so young, everyone can still get in on the ground
floor.
"There's still time to jump on the bandwagon and be there early," Pfeiffer said.
Regarding what he called the "massive" worldwide integration of Digital, Pfeiffer
said Compaq may be on the verge of realizing some benefits from the
acquisition.
"We are well on our way in leveraging (Digital's) total capability," he said.
Compaq also continues to do well in Latin America, despite some of the
economic turmoil there, Pfeiffer said. Brazil's economic malaise, however, could
become a concern if it continues, he added.
The economic crisis in the Asia-Pacific region has also tended to put more
pressure on regional revenue, Pfeiffer said.
Compaq generates only 5% of its global sales from the Asia-Pacific market.
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