The New York Times reported that Compaq is selling more PC’s directly – emulating Dell’s very successful and inventory-less strategy. Michael Winkler, Compaqs Executive VP for Global Business Units said that 59% of the company’s sales in the US were made online or by phone in the 4th quarter compared with 43 percent last year.
Compaq is saving money by having less inventory sitting on shelves and better management of inventory cut $28 from the cost of each PC sold and Mr. Winkler said when you ship over four million units in a quarter, that’s a huge savings.
But I wonder – if Compaq is relying less and less on resellers is that a good thing for them? Or are they shooting themselves in the foot?
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