To: tonyt who wrote (32829 ) 9/12/1998 9:37:00 AM From: Elwood P. Dowd Respond to of 97611
From the Yahoo Board..................... Compaq to Add Notebook Line to Circuit City Kiosks September 14, 1998, Issue: 218 Section: End Cap Off The Shelf There may be a surprise or two appearing on the Circuit City build-to-order kiosks as they evolve through the year. Expect Hewlett-Packard products to make their debut on the stations by month's end. At the same time, BTO notebooks may be part of the formula before long, according to one insider. Both Compaq and IBM are expected to make their respective notebook computer lines part of the Circuit City kiosk offering, with multiple configurations and price points available. It's time the industry reclassified its vernacular. The term "sub-$1,000 PC" no longer applies. These days it's sub-$500 systems that have a chance of raising eyebrows at retail, as Micro Center has long since discovered. Market scouts report that an influx of sub-$500s is likely before the end of the year, and they expect the momentum to build in 1999. One industry veteran reportedly riding the trend is Stephen Dukker, the former Computer City senior vice president, who might be taking up with a Taiwanese PC maker to introduce a new sub-$500 system. The goal, according to one source, is to hit the $399 price point-with monitor ($299 without). Even established-brand-name PC makers are examining their costs as they aim for cheaper PCs. One non-component expense rumored to be confounding their cost formulas: the price of the Windows operating system. Said to add from $50 to $80 to the price, Windows can take a huge bite out of a PC maker's slim profit. Accordingly, expect some vendors to begin looking for alternatives to Windows in the near future, just as they turned to non-Intel microprocessors to trim their chip expense. Dave Uhlman, the former Computer City director of merchandising, joined in-store demo company Sidea as executive vice president. Sidea had been conducting product demos in Computer City stores when the walls caved in. Uhlman said Sidea has since worked out a more extensive deal with CompUSA to do demos in all its stores. Meanwhile, Nathan Morton, former CEO at Computer City, has taken a senior partner position at Channel Marketing (CMC), based in Dallas. Morton is considering consulting options from a number of companies, but hasn't said whether he'll take a full-time executive post. Micro United, the United Stationers division that is being merged with recently acquired Azerty, is expected to depart the PC distribution business, effective immediately. Micro United, which will use Azerty's distribution facilities, had distributed lines that included Toshiba, Acer and (formerly) AST to such retailers as CDW. Azerty executives said the company will stress computer supplies and accessories and, while continuing to focus on key accounts such as office and PC superstores, will also work to develop emerging markets such as grocery, drug and convenience stores.