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Technology Stocks : Compaq
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To: HoodBuilder who wrote (17439)2/16/1998 9:42:00 AM
From: otter  Read Replies (2) of 97611
 
re: "we make up in volume what we loose on each machine". My opinion, only. Dell & GTW are not particularly targeting the first time buyer. There was - oh - more than a year ago, I think an article on just this subject, focusing on Gateway's strategy. Their price point target at the time was not much less than $1,800-$2,000 per system, and I doubt that this strategy has really changed.

CPQ has a retail strategy that isn't modeled by the mail order houses. You won't see Dell or GTW in retail stores; and if you look at what you are actually receiving for your $800, it isn't a lot.

My question (don't know the answer): How many people actually go into the store that is advertising an $800 system and walk out having spent only that much?
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