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Technology Stocks : Compaq
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To: KAD who wrote (20101)3/6/1998 9:05:00 PM
From: Windseye  Read Replies (3) of 97611
 
IN addition, how about factoring in the rationale for buying DEC? CPQ has been pushing the sub $1000 PCs since last winter/spring... and they have been selling? And the profit margin is less. And the more recent sub $1000 can even be used on LANs. And They have been, perhaps, cannabalizing their own medium and high end biz PCs? And do they consider buying DEC because the upscale, enterprise biz will compensate for extreme competitiveness in the home and low end biz markets CAUSED by their entry in the sub $1000 category?

You have to wonder exactly what the game is here... it almost sounds like they are desparately groping for a solid business niche, or they're afraid they don't have one, and they're trying to cover all bases, all of the time, and getting squeezed.
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