Olivetti relaunch will lose market share - analysts

Olivetti PC's re-birth as Olivetti Computers Worldwide has received a mixed reception from dealers and analysts, who claim that although the move away from consumer PCs was "long overdue", it will also lose the company valuable market share.

"If Olivetti loses any more market share they are in danger of falling off the map," said Stephen Brazier, senior industry analyst at Dataquest.

Olivetti revealed the extent of its internal and external struggles of the past six months in a national advertising campaign yesterday. "It's been hell but we're back," said the advert.

"There isn't much that is new from the April announcement," added Brazier. "It's just that the company has been low profile trying to sort out its internal problems, of which there have been many. Now it's re-launching and going high profile."

One former Olivetti dealer said that the new strategy was proof that the company had been losing vast sums in the consumer market. "They've been buying market share in the low end without any returns."

Brazier added that the move was indicative of many PC companies: "Those companies that don't have deep pockets have had their toes burnt in the consumer market and pulled out to focus on business to business. Even Compaq and Dell have to some extent."