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Technology Stocks : eMachines IPO - the next DELL?
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To: J. P. who wrote (8)7/27/1999 11:01:00 PM
From: Bill Jackson   of 11
 
J.P. When you use fully automated factories you offset most of the third worlds labor advantage. So Compaq could compete in this arena with an all-in-one chip design and an ISP kickback. That kickback whatever portion of the $29.95 per month ISP fee they can arrange. After the term of the contract many will stay and use the machine and many will upgrade with a new contract. It resembles car leasing and Compaq will field a division to share that market(instead of watching others take it) Compaq needs to make a lean all in one machine, like an iMac based on a x86 system. With a modem/ethernet or fire wire port it will be ready for cable, analog or ADSL. Many will take this route, Dell, Gateway, compaq etc will try it. Who will do it best? The Korean el cheapos have not done well in the past. American design and market skills will play a large part in this.
The big problem is Compaq is used to fat margins and pricey machines. They need to use phenolic boards in plastic boxes to make the machine good and reliable as well as cheap.

The lawsuit is a delaying action. They have held it up for maximum interference with the back to school and fall pipeline. The 90 days from now means that machines will be held from now until nearly october before entering the country for sale, unless they are made locally. In that case the lawsuit will take years to work through the system and not interfere this year.
Does anyone know when/where e-machine will make stuff in the USA.
Even subassenblies cabn be stopped by customes with a lawyers letter for 90 days. At the 90th??(60th??) day compaq must post a bond to hold them any longer. It is a big monkey wrench to throw at e-machine.

Bill
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