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Technology Stocks : Compaq

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To: Jason W. France who wrote (22146)3/16/1998 10:30:00 PM
From: Dulane U. Ponder  Read Replies (2) of 97611
 
Jason -- butcher, baker, "troublemaker" -- Has it ever occurred to you that cpq may not want to be in the sub 1k market? That sub 1k is simply a means of clearing inventory on the type of machines they no longer wish to build? This is an entirely off the top-of-my-head notion but it has a certain cache (can't figure out how to compute the accent on the final "e").

As for the commercial sector, I agree with your comment (it is on the fronts of mfg and distribution where companies are attempting to
differentiate and create value.)But must remind you ( as you yourself have stated)that cpq's new model is not the same as Dell's. If such is the case, then cpq's model is probably what best fits cpq in its existing relationship with the channel. If, for instance, pc's become a commodity (with specs ranging from those of the current sub 1K's to those, for instance, of a custom Micron desktop [today]top of the line -- I can supply the specs but can't reference while I'm responding to this post), then a retail channel can come in handy. Even high-end refrigerators and sound components are sold through a channel.

I've been cut off twice by my ISP. I'll try to get to enterprise computing next time. dulane
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