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IBM enters online distribution
IBM Germany aims to boost hardware sales with a new online shop. The IT giant hopes to drive up sales, especially in the PC sector, by taking the more direct approach that has worked for rivals Dell.

By editorial@silicon.com

Published: Thursday 26 October 2000

The IBM sales site now offers a broad range of products - from Think Pad notebooks to laser printers and computer systems. Nearly the entire PC sector is represented - Aptiva, PC 300 and the latest Netvista family.

This online presence meets with little approval from Big Blue's distribution partners. Although the web pages refer to the IBM dealer network, the offer is aimed at direct sales.

By creating ecommerce channels, Big Blue aims to stem its hardware sales deficit and establish a firmer foothold in the lucrative consumer market.

Poor turnover figures and disappointing results, particularly in the software field and increasingly also in chip production, are disconcerting for IBM's sales strategists. But it seems Big Blue might have overlooked the price-conscious online shoppers.

Already, potential customers are put off by high prices. One visitor to the site commented that a hard drive costs more in the IBM shop than via a retailer, and as such there is no incentive to use the service.