Compaq beats rival Dell in internet sales

Compaq president Eckhard Pfeiffer insisted last week that the manufacturer was selling more PCs via the internet than its rival Dell.

In his keynote speech at the PC Expo show in New York, Pfeiffer claimed Compaq and its resellers had sold more than $6 million a day over the internet, even though Dell's Web activities have received more publicity.

Michael Dell, CEO at Dell, previously claimed the US had sold $2 million a day, while its European operation had sold $4 million a day.

Compaq also announced 'enhancements' to Direct Plus, its direct sales operation. Direct Plus will now also offer Compaq desktop, server and portable offerings specifically aimed at small and medium businesses.

But the Compaq boss played down its direct selling policy and internet sales. He said: 'Mail order and internet sales together are only 10 per cent of worldwide (PC) volume.'

Pfeiffer said he thought over time, Compaq's and Dell's business models would converge. He added Dell would increasingly have to bring in third parties to supply services and support, while Compaq would build its Web sales. 'Compaq is going to cover every channel out there,' he said.

In his keynote, Pfeiffer also talked about the integration of the Digital and Tandem acquisitions. 'What will differentiate Compaq from our competitors is our ability to innovate with industry standard solutions,' he said.

'With the acquisition of Digital we are expanding our vision of global industry standards to encompass every level of computing,' he added.