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Technology Stocks : Compaq
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To: StockMan who wrote (10403)12/8/1997 3:19:00 AM
From: Tim Bagwell  Read Replies (2) of 97611
 
Stockman, you're right about HWP. They certainly have experience in high volume, low cost manufacturing with the calculators and printers. But, they are struggling to reduce cost of sales and this will be an ongoing issue that will take a lot of management time. If you've watched HWP over the years they have always lagged in reducing costs. I think this will continue for a while. HWP will be playing catch-up with CPQ and DELL here -- unlike the printer biz where HWP sets the prices that everyone else has to match.

CPQ quality is not as good but the public seems to put cost first and there are many loyal and satisfied CPQ customers. Frankly, I refuse to buy CPQ computers based soley on the crappy keyboard they use. I believe it's indicative of quality throughout the box. I also know HP's standards of reliability and environmental testing and I trust the boxes they build -- but noone is perfect. Still, I've never been as impressed with any other PC maker who has to cut costs.
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