Compaq stagnates in Q1

Picks up after that


Compaq CEO Michael Capellas forecasts zero growth for the company in Q1, and overall growth for the first half of 2001 of 5 per cent - half of the 10 per cent achieved in the same period last year.

Capellas made the predictions in an interview with Der Spiegel, the leading German news magazine. Certainly, they are not out of line with consensus analyst forecasts of 6-8 per cent for the full year.

Last week, Capellas told Sunday Business, a UK newspaper that he was comfortable with analyst forecasts, while hinting strongly that he anticipated growth at the upper end of the range.

In the Der Spiegel interview, as reported by Reuters, Capellas said the 'classic' PC industry was 'gradually becoming the "Old Economy" of the information technology sector. "Our task in the future will not be to put cumbersome boxes on people's tables," he said. (Doesn't it have resellers, disties and retailers to do this?)

At some point in the next few months, analysts expect Dell to overtake Compaq as the world's biggest PC maker. Compaq disputes this - it counts iPaqs as PCs. But judging from Capellas' comments, it looks like the company will cheerfully cede top dog status in PC box shifting.

Compaq always has huge margin-fat business in storage systems, servers and services to fall back onThis will play well with Wall Street. But what about Compaq's corporate heartland - the companies that buy Compaq for the same comfort blanket reason they used to buy IBM?

De-emphasise low-margin PCs too much, and Compaq risks throwing out the baby with the bathwater. ®

Related stories

Reuters: Compaq sees sales slowdown
Dell plans big layoffs - Client Server News
Capellas puts the fun back into Compaq
European PC market hit by soft Euro
Compaq suffering iPAQ
Compaq hits reduced Q4 targets


Tech Resources

What WAF is right for you

Applications are architected in many ways, but all need protection from threats. Learn the most important things to consider when choosing a WAF.

Three reasons you need a hybrid multicloud

Businesses need their IT teams to operate applications and data in a hybrid environment spanning on-premises private and public clouds. But this poses many challenges, such as managing complex networking, re-architecting applications for the cloud, and managing multiple infrastructure silos. There is a pressing need for a single platform that addresses these challenges - a hybrid multicloud built for the digital innovation era. Just this Regcast to find out: Why hybrid multicloud is the ideal path to accelerate cloud migration.

Top 20 Private Cloud Questions Answered

Download this asset for straight answers to your top private cloud questions.

How backup modernization changes the ransomware game

If the thrill of backing up your data and wondering if you will ever see it again has worn off, start the new year by getting rid of the lingering pain of legacy backup. Bipul Sinha, CEO of the Cloud Data Management Company, Rubrik, and Miguel Zatarain, Director of Global Infrastructure Technology at PACCAR, Fortune 500 manufacturer of trucks and Rubrik customer, are talking to the Reg’s Tim Phillips about how to eliminate the costly, slow and spotty performance of legacy backup, and how to modernize your implementation in 2021 to make your business more resilient.

Biting the hand that feeds IT © 1998–2021