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Technology Stocks : Compaq
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To: michael c. peterson who wrote (339)10/23/1996 3:03:00 PM
From: Acid   of 97611
 
You seem to view Compaq being primarily a consumer PC company. Most of their profits comes from the server business and the commercial PC business. I don't think anyone ever expects Compaq's consumer division to bring in alot of profit, just to hopefully not lose too much. Eventually, servers may not have the high profit margins they do today, but I doubt they will be considered a commodity. Also, Compaq is getting into switches and routers. They are attempting to become an overall enterprise computing solution. This isn't really a commodity business. Will they be successful? Who knows, but Compaq's future depends on how they perform in this arena alot more than how much money they will make on the boxes they sell at Best Buy and Circuit City.
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