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Technology Stocks : Compaq

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To: Dr. Arvind who wrote (3969)7/10/1997 9:27:00 PM
From: Panita   of 97611
 
Compaq vs. Dell

To determine the winner, look at the big picture. Where will growth come from?

For example in the US home PC market, the target market (certain income/education) is almost saturated. Most people that can afford it have bought a PC. That is why low end priced models have been introduced in the last six months. PC manufactures are hopping to introduce lower income peolple to PCs. Have you seen the Compaq $999.- unit in the stores? Manufactures such as Compaq are getting new users hooked to PC's. The new users then trade up to fancier model as they outgrow the basic units. (Something like cars how many people drive a Lexus when they can barely pay for it) I haven't not seen a Dell model in the low entry level price range. Compaq will have an edge with the new users at trade up time.

Internationally is perhaps more important growth generator for PC manufactures. In Europe few people that can afford own a home PC. (I sell Midrange computers to Spain and Italy. My customers who are computer resellers do not own a home PCyet!!!!). In Latin America and Asia where PC's are booming Compaq is king. Dell is well known here in the USA but outside of the US Dell is not.
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