Compaq halts deal with 'net-only resellers

Compaq halts deal with 'net-only resellers

Compaq last week asked two of its major distributors to stop selling its Presario consumer PCs to retailers whose main business is conducted on the Internet until Compaq can craft programs specific to the Internet.

Compaq sells its Presario through Tech Data and Ingram Micro, but retains the right to authorise to whom these resellers market, according to Hedy Baker, a Compaq spokeswoman.

During the past several months, Compaq received so many requests from Internet retailers seeking to sell the Presario that it decided to create specific programs for the resellers rather than work with them based on Compaq's older channel model, Baker said.

Baker, who acknowledged that this particular channel was growing larger than Compaq had anticipated, declined to comment about programs the company might create. She did say Compaq intends to have the programs in place -- and reauthorise its distributors to sell to Internet retailers -- within 90 days.

One reseller, Cyberian Outpost, learned more than one week ago that its authorisation to resell the Presario had been pulled when the company received a letter from Compaq.

The letter did not provide details of Compaq's decision to revoke authorisation from its distributors, but the emerging Internet model is clearly something Compaq wanted to consider.

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