Fiorina Says HP On Track To Sell More PCs Direct

Fiorina made the comments in a question and answer session following her presentation at the HP analysts' conference in San Francisco.

"Yes, we are on track to meet those goals," Fiorina said. According to HP market projections made at last June's analysts' meeting, about 16 percent of its PSG commercial business is direct today. But HP said in June that 50 percent of its commercial PSG business would be direct in 2004.

Fiorina said that HP would remain channel-neutral and not try to force more business direct. Rather, she said that market dynamics are causing HP to stick with the 50 percent direct projection in 2004. "That's what [PSG customers are doing," she said. "Just look at the market dynamics."

PSG products include PCs, notebooks and handhelds. Commercial products are those that are sold to businesses as opposed to systems sold through the retail channel.

Fiorina noted that the channel still is the prime mover of HP products despite the trend toward direct in the PC business. "You have to think about indirect beyond the PC business," she said. "The vast majority of our business -- two-thirds--goes through channel partners. You can't take 50 percent of PCs and apply that to the company overall."