Siemens Nixdorf Informationssysteme AG doesn’t seem to have heard about the success of direct personal computer seller Dell Computer Corp, and rival Compaq Computer Corp’s recent efforts to de-emphasize its indirect selling model in favor of something similar. Bucking the trend completely, SNI told Reuters it would soon begin shipping all of its personal computers through resellers, and will scale back on direct sales. It hopes the move will boost the sales and margins on its personal computer business. SNI is currently selling around one million PCs outside of the US, where it does not sell PCs, per year, and expects that to rise to 1.4 million in 1997-8. Our weakness in the past in distribution is going to become our strength, SNI’s Jan Jensen said. In the past, we have focused on large accounts and large projects, where PC pricing is very different than when selling five or 10 PCs at a time. But despite Compaq’s new interest in direct selling, its indirect channels are strongest in Europe, and SNI will face tough competition.
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