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To: edamo who wrote (117011)4/13/1999 1:16:00 PM
From: Mohan Marette  Read Replies (2) | Respond to of 176387
 
IBM doing a 5fer???? I thought Gerstner said 'PC is dead',what gives?

ed a:
Firt 5fer tried it and pissed of the channels and look what that got him,now IBM.First he says the PC is dead and now going online at the risk of pissing off the channels just like Compaq..Oh well bring it on the more they try the better the chances for Dell to get back at them I say.

Tuesday, April 13, 1999
BUSINESS

Asia not affected by IBM direct-sales plan

CAROLYN ONG and AGENCIES
South China Morning Post

--------------------------------------------------------------------------------
IBM is the latest PC vendor to take the highly successful Dell path of bypassing resellers to sell directly to customers. However, in Asia-Pacific IBM will continue to work closely with business partners.

An IBM Asia-Pacific official said Project Odyssey, IBM's plan to put its full PC range on-line, would be limited to its North American market and "might possibly be introduced partially later in Japan".

Systems-Pro, an IBM PC reseller in Hong Kong was surprised by the news. After talks with IBM officials, Claudius Lam, marketing services manager with Systems-Pro, told Technology Post that the on-line plans were limited to the US, and that he did not foresee IBM side-stepping resellers in Hong Kong over the next two to three years.

Officials from competitors Dell and Compaq were not surprised by the news. Tony Leung, Compaq's marketing director for Greater China, said: "IBM has been talking about it for the past six months or so, and it really comes as no surprise.

"My guess is that they (IBM) probably wouldn't go direct in Asia, not in the short term anyway. But it is inevitable that (PC) vendors will go the direct way. It is important for the resellers to reinvent themselves now."

The IBM official said: "We have to look at market readiness. The environment here is different from the one in the US. And Asia-Pacific is not as comfortable right now with e-commerce the way the US is."

IBM's on-line sales reached a total of US$3.3 billion last year, and the company expects the figure to exceed $10 billion this year.