SCIENCE/TECHNOLOGY : Ingram Micro Fails to Land Distribution Deal With Compaq
Ingram Micro, a Santa Ana wholesaler of computer products, lost a battle in the distribution wars last week when Compaq Computer Corp. named two rivals to distribute its line of personal computers nationwide.
Compaq, which has been losing market share to smaller rivals like AST Research Inc. in Irvine, chose Merisel Inc. and Tech Data Corp. as its distributors.
The three rivals jockeyed for months to win the Compaq account. The nation’s top three computer makers--Compaq, IBM and Apple--traditionally have not used distributors as middlemen to sell their products, preferring sales through dealers. For distributors, a deal with any of those three PC makers would provide a boost in sales and recognition.
“Compaq has come into the 1990s with its distribution strategy,” said Michael D. Pickett, chief executive of Merisel, based in El Segundo. “This is important for us because it gives us recognition.”
Houston-based Compaq has hit rocky times recently, reporting a $70-million third-quarter loss and shocking the industry two weeks ago by firing Rod Canion, its founder and chief executive. Those events prompted Compaq, whose products have always been sold through authorized dealers, to link up with distributors to try to expand sales beyond its usual markets.
The deals with Merisel and Florida-based Tech Data mean that Compaq’s computers now will be sold by value-added resellers, or retailers who package software or other extra gear with PCs and sell them to specific industries, said Ross Cooley, a Compaq vice president.
Ingram Micro officials could not be reached for comment. The company recently formed a systems sales division to distribute products for major computer manufacturers and signed a deal to distribute Hewlett-Packard Co. workstations.
But Ingram Micro is also trying to land a contract to distribute IBM and Apple products. Industry observers expect both companies to ally themselves with a distributor to expand their reach to new customers.
“IBM and Apple are talking to every major player in distribution,” Pickett said.
