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Technology Stocks : Compaq

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To: Thomas Dremel who wrote (20150)3/6/1998 10:00:00 PM
From: Chris  Read Replies (1) of 97611
 
Does CPQ actually build computers for their business clients before they are ordered? I can see pre-production for retail sales, but I don't understand why a company would build equipment for a huge networking enterprise before the contract was signed.

I can understand CPQ computers being built ahead of time for retail stores like CompUSA, Office Depot, etc. and there is a market for this type of sales. Believe it or not there are millions of people who have yet to purchase their first PC. These are the people who would like to "kick the tires" before purchasing, and you can't do that with Dell direct order system. I think that CPQs lower pricing will bring in a number of these new people, especially now that the internet has become so popular.

All that said, I still think that the enterprise side is the most important for CPQ, and again if someone knows, please explain to me why there would be channel stuffing on the commercial end.

Thanks,

Chris
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