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Technology Stocks : PC Sector Round Table
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To: Pierre-X who wrote (4)3/16/1998 9:27:00 PM
From: Yogi - Paul  Read Replies (2) of 2025
 
PX,
Interesting article on Compaq's efforts to clear channel of inventory.
techweb.com

Of particular concern is the possibility of substantially lower margins in the commercial market.

"He said Compaq's move to clear out inventory could hurt the commercial PC market and create unrealistic expectations about costs.

Tony Audus, director of purchasing at Technology Partners, a VAR in Ann Arbor, Mich., said Compaq is going to have to continue to offer sub-$1,000 commercial desktops. "They're certainly going to have to maintain this [price] segment for businesses," he said. "The obvious next step is to introduce a new system with more features."

Obviously, everyone has accepted lower margins in home computers. Are lower margins in commercial hardware "in the market"?

Comments and analysis?

irthrifty
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