To: Paul Reuben who wrote (81030 ) 11/17/1998 6:49:00 PM From: TechMkt Respond to of 176388
Bring'em on!! Fez _____________________________ Tuesday November 17 12:43 PM ET Dell ready to take on all comers PC Week By Anne Knowles, ZDNet LAS VEGAS -- Dell Computer Corp. isn't feeling threatened by the direct-sales push of Compaq Computer Corp. and other large OEMs, which increasingly are branching out of their traditional indirect sales model. Compaq, IBM and other computer makers are trying a hybrid direct/indirect approach to PC sales that Dell tried years ago and found seriously wanting, said Michael Dell, chairman and CEO of the Round Rock, Texas, direct powerhouse, during a press conference here at Comdex/Fall. "They go to great pains to distinguish between direct and indirect customers," said Dell, adding that such distinctions no longer exist. "The market is going direct." Compaq last week announced a direct program, called DirectPlus, which is targeted at small to midsize businesses. Continue to be aggressive Pursuing the direct approach, Dell expects to continue its aggressive growth. In its third fiscal quarter, Dell recorded $10 million a day in sales at its Web site, or about 20 percent of its total sales. That's double the amount of business it was doing online six months ago, Dell said. The company's server and workstation business grew more than 100 percent for the eighth consecutive quarter, while sales of its mobile PCs jumped 93 percent. As part of its mobile push, Dell has been showing an upcoming 3-pound notebook to customers. Although the company is not exhibiting at Comdex, it is holding a series of customer meetings behind closed doors. Making predictions Dell predicted corporate interest in the sub-$1,000 PC is on the wane and that thin clients won't drum up more than the lackluster interest they've attracted so far. Asked if his company would enter the small-form-factor market now dominated by 3Com Corp.'s PalmPilot and devices based on Microsoft Corp.'s Windows CE, Dell said the computer maker will wait and see. Despite the popularity of such devices, it might not be a market Dell wants to invade, he said. "There's a market for gigapets, too, but not necessarily a very lucrative one," Dell quipped.