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Technology Stocks : Compaq
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To: Night Writer who wrote (25918)5/9/1998 12:51:00 AM
From: Jack T. Pearson  Read Replies (2) of 97611
 
Let's play "What if?" What if a competitor buys Unisys?

The competitor has to lay off a lot of employees who formerly serviced those companies that are now competitors. Just like DEC is laying off a lot of service people who previously supported Dell and NEC. Then those people go to work for whatever organizations still service Dell and the other companies. BTW, Dell's arrangements with Unisys and Wang aren't exclusive. IMHO,Dell doesn't have a problem with a service provider providing service to other PC companies. What they have a problem with is services provided by a major competitor like Compaq, IBM, or HP.

Now I have a "what if" for you. What if all of the PC companies for whom DEC provided service prior to DEC's purchase by Compaq cancel DEC's service contracts. How will that impact Compaq's bottom line?
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