RealTime IT News

Sohu Auctions Compaq PCs in China

Hot on the heals of Netease.com, another of China's largest portals, Sohu.com, has started auctioning computers to China's Internet users.

Sohu has partnered with Compaq Computer Corp. and Merchant Bank to sell Compaq PC's online. The auction started yesterday.

To bid on an item, users need to register their detailed personal information on Sohu. Buyers will make choices online and payment can be made by either Merchant Bank's debit card or cash-on-delivery.

Dawncom Group, the biggest Compaq distributor in China, will deliver the computers to the door step.

"The cooperation with Compaq established a good example of co-branding," said Sohu CEO, Charles Zhang, "Compaq has a good reputation in the market for its high quality products and after-sales service."

"Sohu.com is famous for its comprehensive and diversified online content, user-friendly functionality and big share of eyeballs. It definitely strengthens our confidence in our cooperation and the future of E-commerce in China," said Randy Tan, Compaq Computer Corp.'s PRC managing director.

In July, Sohu's competitor Netease held a trial online auction in China, apparently drawing 20,000 bidders, selling 150 Great Wall computers, and making US$150,000 in one week. Netease says it will debut a full auction site this month.

Businessweek recently published an article indicating that Sohu was not the high flyer that the industry had thought it was. The magazine cited Sohu's difficulty with keeping staff and, more significantly, a conflict between Sohu and its backers over discrepancies in the portal's advertising revenue books.