ALR Strikes Bargain With ComputerLand : Computers: Nationwide chain will begin selling line by Advanced Logic Research.
Advanced Logic Research Inc., a manufacturer of personal computers, is expected to announce today that ComputerLand’s nationwide chain of 470 stores will sell ALR’s line of machines.
The announcement is an important one for ALR, considering that the company competes with dozens of so-called second-tier computer makers for the chance to sell its wares on the shelves of major retail chains. ComputerLand, with $3 billion in sales in 1990, is the computer industry’s biggest retailer.
One analyst said the deal could mean an important boost in sales for ALR, which will compete to become the low-priced alternative to ComputerLand’s three top-selling brands: IBM, Apple and Compaq.
Other popular clone brands offered at ComputerLand stores include Epson, Hyundai Electronics and Cumulus, said ComputerLand spokesman Stephen Taylor.
“This is an extremely prized position,” said Douglas Kass, a computer distribution analyst at Dataquest, a San Jose market research firm. “ComputerLand is devoted to the top three brands, but they have a long history of bringing in second-tier vendors and offering them as alternatives. The fact that ALR is now going to be offered is definitely noteworthy.”
AST Research Inc., an Irvine-based manufacturer and ALR’s larger local rival, no longer sells its line of computers to ComputerLand Corp., Taylor said.
AST computers are still sold in ComputerLand stores, but AST sells computers and support services directly to ComputerLand’s franchisees rather than the corporate entity, said spokesman Joel Don.
Taylor said ComputerLand selected ALR’s line of PCs because of low prices, a wide range of offerings among the different computer standards, the brand’s popularity among corporate buyers who are the chain’s biggest customers, and distinguishing technical features such as the ability to upgrade ALR computers to a faster processing speed.
“The market will determine whether they become the fourth-selling brand, but we expect them to do quite well,” Taylor said.
