Compaq Computer Teams Up With Genuine to
Sell PCs in Taiwan
Bloomberg News
April 21, 1999, 11:42 p.m. PT
Compaq Computer Teams Up With Genuine to Sell PCs in Taiwan
Taipei, April 22 (Bloomberg) -- Compaq Computer Corp. said
Genuine C & C Inc. agreed to distribute its personal computers in
Taiwan, strengthening its competitive position on the island.
Houston-based Compaq, Taiwan's leading foreign personal
computer maker, will take advantage of Genuine's network of 5,000
stores to expand sales in a market dominated by local producers
such as Acer Inc.
''Compaq will become a much more powerful brand with the
help of (Genuine's) huge network,'' said Rosemary W. Ho, managing
director of Compaq Computer Taiwan Ltd.
At stake is Taiwan's $242 million consumer PC market, which
analysts said will grow by between 8 percent and 10 percent per
year. In 1998, Compaq sold consumer PCs worth $9 million on the
island, followed by IBM at $5.7 million and Packard Bell NEC Inc.
at $2.3 million, according to U.S.-based research firm
International Data Corp.
Acer, Taiwan's largest personal computer producer, had sales
of $60.9 million, IDC said.
Compaq is emphasizing sales growth in Taiwan, mainland China
and Hong Kong, where combined sales are estimated at $1.5 billion
this year, or 3 percent of the company's total.
Genuine shares rose 6.2 percent to NT$29.10, their highest
level since the company began trading on the over-the-counter
stock exchange Saturday. The rise reflected optimism that the
agreement with Compaq will bolster Genuine's earnings.
Taiwan, the world's fourth-largest producer of computer
products, is a major manufacturing center for Compaq. In March,
the company said procurement from Taiwan companies will rise to
$7 billion this year from $5.6 billion last year. |
