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

To: Elwood P. Dowd who wrote (36707)	11/16/1998 8:39:00 PM
From: rupert1	Read Replies (4) \| Respond to of 97611

El: I didn't say anything. Never heard of Harvey's. Whose Harvey - wasn't he a big rabbit who bugged James Stewart. Victor

To: Elwood P. Dowd who wrote (36707)	11/16/1998 9:01:00 PM
From: John Koligman	Respond to of 97611

Dow Jones rehash of EP's talk.... The Wall Street Journal Interactive Edition -- November 16, 1998 Comdex 1998 Compaq Chief Says Firm Isn't Trying to Turn Itself Into Dell Dow Jones Newswires LAS VEGAS -- Compaq Computer Corp.'s chief executive said that even though the company was ahead of internal sales projections on its brand new direct-sales plan, it isn't trying to turn itself into rival Dell Computer Corp. In a keynote address here at the Comdex trade show, Eckhard Pfeiffer emphasized that the recent announcement that Compaq is selling computers directly to small and medium-size businesses didn't mean that the whole company would eventually become a direct marketer. Minimizing the drive to beat Dell, Mr. Pfeiffer said Compaq's new hybrid sales mechanism, which combines direct sales with already existing distribution channels, was part of a business model to offer wider choices to its customers. "Our goal here isn't just to beat Dell and Gateway," Mr. Pfeiffer said, referring to rival computer makers that sell products exclusively via direct channels. Sales from its direct plan -- introduced in the U.S. only last week -- were more than double internal projections, Mr. Pfeiffer said. In an interview, he said call volume exceeded plans by 120% in the program's first week. Under Compaq's new plan, customers will be able to buy computers directly, avoiding the middleman. Customers will also be able to buy computers through the more traditional channels. "It's like Burger King: You can have it your way," said Louis Mazzucchelli, an analyst with Gerard Klauer Mattison attending Mr. Pfeiffer's speech. Compaq shipped 11.4 million computers last year, beating rival International Business Machines Corp. by 4 million machines and beating Dell by 7 million computers, he said. Mr. Pfeiffer said the new direct-sales plan "is running very well and exceeding our expectations. Obviously, we're shipping everything within the committed cycle time." Mr. Pfeiffer was upbeat about demand for technology in the U.S. and Europe, saying that "the two strongest markets are in good shape." "That gives us more confidence that no [crisis in] Russia or Brazil can throw business off completely," he said. Further, he said recent actions by the International Monetary Fund have helped to contain economic weakness in Brazil. "In the overall environment, I believe we will see good growth in the mid-teens in 1999," Mr. Pfeiffer said. He said he has been probing Compaq customers about how likely they are to spend their technology dollars in 1999 as they ready their computer systems for the Year 2000 software bug. "Many are not sure yet," he said. "They have plans, but many companies are not where they want to be and the urgency keeps rising. Some may definitely make some big purchases to replace noncompliant systems." If it works out that many companies buy new systems rather than upgrading old ones, "we could have a stronger first half than normal" in 1999, he said. Some experts believe that if that proves true, computer spending could fall off in the second half of 1999. But Mr. Pfeiffer noted that the second half is when schools and consumers typically spend more for computers. He also sees new products spurring demand for computers late next year, including the introduction of Microsoft Corp.'s Windows 2000 for corporate users and home networking products for consumers. Compaq introduced new options Monday for home PC users who want faster Internet connections. As it stands now, different regions in the U.S. offer different types of high-speed Internet connections, making things confusing for consumers. The Compaq modem, however, is compliant with cable, high-speed ADSL and satellite systems. Mr. Pfeiffer said the new device "breaks down one of the key barriers that everyone's been talking about." "There's always one or two major hurdles to really opening up the new world" in technology, he said. "That seemed to be a remaining hurdle."