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To: Elwood P. Dowd who wrote (68869)10/14/1999 4:05:00 PM
From: Captain Jack  Read Replies (2) | Respond to of 97611
 
C'mon El... we held 22 for today,, be calm,,



To: Elwood P. Dowd who wrote (68869)10/14/1999 4:30:00 PM
From: Kenya AA  Read Replies (2) | Respond to of 97611
 
El: Speaking of off topic, "never look a gift horse in the mouth" is similar to the "horse's mouth" thing. Means that if it's free, why bother checking the teeth.

Yeah? Tell that to the Trojans.

<ggg>

K



To: Elwood P. Dowd who wrote (68869)10/14/1999 5:59:00 PM
From: John Koligman  Read Replies (1) | Respond to of 97611
 
Hello Elwood - Here's an 'on topic' one for you!

Regards,
John

IBM's 'ass backwards' Aptiva pullout

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Updated 1:17 PM ET October 14, 1999

By Charles Cooper, ZDNet News

IBM Corp. is facing criticism for its decision to
stop selling its Aptiva desktop personal
computers through retail chains in the United
States in favor of selling the product over the
Internet.

The move, which has been communicated to
retailers over the last couple of weeks, follows IBM's decision to streamline its
Personal Systems Group by cutting up to 1,000 employees in a bid to improve
the profitability of the division.

With an eye on the success enjoyed by Dell Computer Corp. (NASDAQ:DELL)
selling systems over the World Wide Web, IBM is believed to be keen on
finding a less expensive, more efficient way to target consumers. Sources say
IBM (NYSE:IBM) is preparing to put more emphasis on sales via the Internet
when the changes go into effect this January.

However, a spokeswoman said IBM may revisit its decision and reinstate retail
sales of Aptiva at a still undetermined date in the future.

'A temporary decision' "It's a temporary decision," Trink Guarino. "We may go
back to retailers when we figure out how to differentiate Aptivas on store
shelves."

Selected retail outfits will still be able to sell the Aptiva overseas and the move
will not affect sales of IBM's ThinkPad through domestic retailers.

But in pulling its desktops out of the domestic retail market, IBM's move puts
about 10 percent of the market up for grabs. The most likely contenders to fill
the gap include Compaq Computer Corp. (NYSE:CPQ), Hewlett-Packard Co.
(NYSE:HWP) and eMachines Inc.

'Totally ass backwards' The move caught some analysts and industry
executives by surprise.

"I don't think it's more efficient or more profitable," said Stephen Baker, the
director of analysis at PC Data Inc. in Reston, Va. "What they're doing is totally
ass backwards. Retail sales of notebooks are not particularly strong and never
have been. Retailers have a tough time explaining them to customers."

He added that IBM would face difficulty reproducing the success of its
arch-rival.

"Everyone wants to be Dell," he said. "But you know what: Dell is Dell and Dell
is unique. You can't jump out of one business into another and expect to be
successful.

"I thought IBM hit on a decent strategy in the last few months where they
stopped trying to play in the real aggressive market and concentrate on
mid-range price, do more volume and play off their name," he continued. "It
seems this says more about IBM than the ability to sell through retail."

'Doomed to failure' "I think it's doomed for failure," said Matt Sargent at
Infobeads, a Ziff-Davis company. "The Aptiva served the consumer that bought
on name. It's never been a traditional strong player. What IBM is saying is
they're giving up on Aptiva. Clearly, they can't play in the low-price market and
can't hang with it."

An executive with one retail chain was nonplussed at the change and
expressed annoyance at IBM's decision to pull the Aptiva out of retail.

"This is a nice way of rewarding loyalty," said the source, asking to remain
unidentified. "They say they may go back in once they figure out how to best
meet the needs of the consumer. Well, why don't they ask us? We're the ones
who deal everyday with the consumer, not IBM."