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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: PCSS who wrote (67589)	9/13/1999 4:17:00 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

Compaq seeking ally for wireless-linked devices PARIS, Sept 13 (Reuters) - Compaq Computer Corp. (NYSE:CPQ - news), the world's No. 1 personal computer maker, is gearing for a complete redefinition of the PC and working on alliances to produce simpler, redesigned devices with wireless links, its chief executive said on Monday. ''Our goal should be to build really cool stuff,'' Michael Capellas, the U.S. computer maker's newly hired president and chief executive, told a news briefing as he completed a European tour aimed at outlining strategy for the company. Houston-based Compaq's direction has been blurred since predecessor CEO Eckhard Pfeiffer was forced out in April by a board unhappy with repeated sales problems and slow progress in expanding beyond PCs. Capellas told a conference organised by research group International Data Corp. that he believed one key outcome from the Internet explosion would be a dramatic change in what the PC is. ''The new wave says how do we make these machines simpler and simpler -- with specialised functions. Wireless connectivity becomes the actual baseline,'' he said. Asked if this focus meant fresh alliances, he said: ''You can assume we are aggressively pursuing that, and no, I won't say who.'' He added that Compaq aimed to have established ''close relations with somebody before the end of the year.'' Capellas, facing faster-growing rivals like Dell Computer Corp. (Nasdaq:DELL - news), which sells direct to customers via telephone and increasingly through the Internet, said Compaq was already making considerable use of Internet distribution channels in its dealings with large corporate account customers. Compaq is is also exploiting the Internet to sell networked data storage, an area set to be a focus for dramatic growth, he said. ''Inventory is the enemy,'' he added, referring to a key competitive advantage grabbed by Dell in its advance. While direct-selling's benefit in eliminating stocks from the supply chain was clear, he also highlighted the Internet's potential to simplify product design, noting that Apple had ''established that there is great appeal in industrial design.'' In selling to large businesses, Compaq should ''go back to our roots and really create an Internet infrastructure,'' with a focus on offering ''non-stop capabilities,'' Capellas said. Non-stop is Compaq's catchphrase for a range of high-volume, fail-safe computer systems capable of running the largest business operations, including Internet-based ones. An innovative advertising campaign was due to start in the next quarter, he added. Shares of Compaq, which earlier announced price cuts on its entire line of commercial desktop PCs in a bid to regain sales momentum, lost 5/16 of a point to 24-7/8 in active afternoon trading on the New York Stock Exchange on Monday. (Sara Ledwith, European Technology Correspondent, + 33 6 07 02 93 21) More Quotes and News: Compaq Comp