HP denies targeting Dell

Top Config programme may take market share from UK system builders, it admits

Hewlett Packard (HP) has refuted claims that its new Top Config programme is targeted at direct vendor Dell, but has admitted it may take market share from UK system builders.

The programme, due to start a three-month pilot in July, allows resellers to configure a PC via a participating distributor's website. The PC is then shipped directly to the reseller or end-user from HP.

Andy Vickers, channel and SMB director at HP, said: "This has nothing to do with Dell. This is for customers that want build to order (BTO) and are happy to wait.

"The distributors don't hold inventory and we deliver it straight to the end-user, so it takes out touches in the supply chain."

But Vickers admitted: "It might take some market share from system builders, but not much, as this is HP-branded."

James Governor, principal analyst at RedMonk, said system builders are already feeling squeezed by Intel, Dell and HP, and this could put more pressure on the market.

But he added that it could be good for distributors, because it is not good to hold excess inventory at the moment.

Distributors launching the scheme with HP include Ideal, Westcoast and Ingram Micro. Computer 2000 (C2000) will also join the scheme but has yet to finalise details.

Loay Lawrence, HP business manager at Ideal, said: "This is about supply-chain efficiency and managing stock. HP has always been involved in BTO. This is complementary [to its other schemes]."

But other channel players believe the scheme is aimed at Dell. Russell Blackburn, general manager for the HP-focused business unit at C2000, said HP is trying to cover all of its bases.

"It is competing with Dell on one level, while also providing what the customer wants," he said.

Luke Ireland, director at BTO PC vendor Centerprise, said: "HP will have difficulty taking market share from system builders because of the level of service UK system builders offer. This is about taking market share from Dell."

Duncan Wyeth, sales and marketing director at Var Serion Logic, said: "Everything HP does is with one eye on Dell."

Dell declined to comment.