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Technology Stocks : Compaq

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To: Jason W. France who wrote (21731)3/14/1998 3:12:00 AM
From: WeisbrichA  Read Replies (2) of 97611
 
JF,

RE: " What is CPQ going to do with the 300,000 MMX units they have stuck in the channel that corp america does not want?"

1) In which channel, the commercial channel or retail channel. You will probably find the MMX in the Presario (retail home PC), Not the Deskpro(commercial desktop). Retail channel seems to have (if you have read posts here on SI and outside sources) a SHORTAGE of PCs.

2) Your question tries to create the impression that you KNOW that there are 300,00 units of any kind in any channel. You are professing to know more than manufacturers know themselves at any point in time. If you are giving numbers, please state your sources.

3) Screwdriver shops like Dell are necessarily oriented towards less complicated products. Dell is the only one of the screwdriver shops that has not purchased a company which has high level ($) servers. Nearly all of Dell's PC server competitors sell server products that support up to 6 processors and NT and Unix standard operating systems. Dell, in an interview cited elsewhere on thread gave average price of their product as somewhat less than $2K. Manufacturers enter a different world when larger scale servers come into play. The distribution channel and VAR (resellers) customize the larger systems to customer requirements. It is kind of like ordering a new Tarus compared to a Kenworth 18-wheeler Truck.

RW
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