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Technology Stocks : Compaq
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To: PCSS who wrote (9550)11/25/1997 10:02:00 AM
From: Brian Pastor  Read Replies (3) of 97611
 
I agree. CPQ Inventory for Big Holiday Season. Dell does disservice by trying to compare his apples (distribution system) with that of CPQ's which system is through stores which must carry inventory. Also, Dell is making a BIG error in judgment by ignoring the sub-1000 system which CPQ is going after. Even if margins turn out to be lower (which CPQ has repeatedly stated they are in fact not lower), CPQ will more than make it up on a volume increase by pulling in millions of customers who otherwise would not be able to buy a PC. I bought one just to have an extra (It was only $800.00). The sub-1000 PCs are going to be what the market wants this Holiday season. Indeed, everyone is on record now agreeing that they underestimated the demand for these full function PCs.
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