SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Compaq

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dulane U. Ponder who wrote (22158)3/16/1998 10:46:00 PM
From: rudedog  Read Replies (1) of 97611
 
Dulane -
In sub-1K, you need to specify whether you are talking about CPQ's consumer business or commercial business. Consumer people seem intent on driving price down, with no end in sight, since this drives more first time buyers who then move up to more expensive machines later. This has been a very successful strategy for them - CPQ can't make enough consumer machines and growth in that segment was a Dell- like 97% year over year as reported in a number of publications.

Their commercial business is, I think a different story and I believe you have it right - this was a way of moving that older desktop inventory. However, there were already indications that the rapid decline in the consumer space was driving corporate customers to look for lower prices also. CPQ may have created a new price floor for commercial desktops.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext