Compaq beats IBM to supply PCs to Tandy
Article Abstract:
Compaq has won exclusive rights to supply PCs to Tandy's Radio Shack chain. Compaq, which prevailed over incumbent supplier IBM, will increase domestic distribution of its Presario consumer PCs from 6,000 stores to about 13,000 stores. Another condition of the three-year deal calls for Compaq and Tandy to share marketing costs expected to reach the tens of millions of dollars. Executives said Compaq differentiated itself by offering more money for promotion and preparing special 'store within a store' display areas for Radio Shack stores. Radio Shack also gained the lucrative right to offer service on Compaq's commercial PCs, although they will not be available through its stores. Radio Shack derives about 12% of its $3.2 billion in annual sales from computers and related products. A Radio Shack executive said the 6,800-store chain will begin offering Compaqs in Apr 1998.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Compaq to cut PC price tags to halt Dell
Article Abstract:
Compaq is planning to reduce the prices on corporate personal computers in an attempt to thwart Dell Computer. The company is expected to implement new production and distribution techniques, allowing it to make the price cuts without harming its profits. Compaq intends for the reduction in prices to be a permanent thing, thus avoiding a temporary price war. Analysts believe the move is part of an effort to prevent Dell from gaining market share in the corporate PC industry. Compaq's stock is up 5%, or $4.875 a share, to $119.375 and investors are anticipating the company will experience strong growth and profit. The price changes will take place during Compaq's $3 billion acquisition of Tandem Computer, a high-end and mainframe computer maker.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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