Michael: COMPAQ has explained the development, through Adams, head of its Consumer Marketing. If this explanation is sound, then I think it may be a storm in a tea-cup and, at worst, a buying opportunity.
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"Adams said Compaq took the action in response to the growing number or requests to sell via the Internet, not only by online retailers, but from its traditional retailers who are opening online outlets. Compaq itself also is beefing up efforts to sell PCs direct to consumers via its own Web site.
She said sales to the group of Internet retailers represented an insignificant part of its overall business. ''They weren't even on our radar until recently,'' Adams said.
But Schelley Olhava, a consumer PC analyst with International Data Corp., said Compaq's action was the latest sign of growing pains between the computer maker's mainstay traditional retail distribution lines and newer Web outlets.
''Our (distribution) program is really designed for a standard retailer that carries inventory, provides customer service ... and other on-floor support,'' she said of her company's continued focus on face-to-face sales in stores.
''All of the programs we offer are really inappropriate'' for Internet retailing, Adams said of how Compaq was rethinking its approach to Web sales. ''How do you have programs that help you optimize and grow that business?'' she asked."
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