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Technology Stocks : Compaq
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To: Mike Gordon who wrote (22150)3/16/1998 10:18:00 PM
From: rudedog  Read Replies (1) of 97611
 
good points. those house brands will also require service, and white box service is by most measures a lot more expensive to provide (since component consistency and quality is a lot harder to control). Add to this the ongoing burden of certification of that hardware with Microsoft (otherwise MS support will give even less support than they do for the certified vendors, which is not al that much in the first place) and the house brand starts to look pretty unattractive. The difference in margin is at best 10-12 points - so these vendors would have maybe a few points left for their troubles after paying the costs above.
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