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Technology Stocks : Compaq
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To: Tumbleweed who wrote (10076)12/3/1997 5:25:00 PM
From: StockMan  Read Replies (1) of 97611
 
Joe,
Re -- Compaq makes more profit on a $1000 machine that the business models.

Really, show me the numbers. There are reports, which state that CPQ's margins are in 5-6% range on these machines. They can't because the middleman has to get his cut.

CPQ squeezes, the 2nd tier companies (only these will sell out), such as Cyrix and AMD and other peripherals for at cost deals. Thus most of what goes into the really cheap PC's such as the 799, 899 etc..
are 2nd tier peripherals.

Stockman
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