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Technology Stocks : Compaq
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To: Eddie Kim who wrote (26521)5/25/1998 1:00:00 AM
From: SC  Read Replies (3) of 97611
 
Compare Delll and Compaq's latest Pentium II PCs by PC Magazine links below.

<<Am I missing something here? Where's Dell's huge price advantage?>>

Here is the answer your question on Dell's price advantage: higher price (advantage fo Dell) relative to enhanced performances and quality (advantagve for customers). Their pricing advantage is "PRICE/PERFORMANCE", but they try to create demands for their products by quality and higher performance rather than the cheapest prices at low or no profit. Here is the latest example:

Take at a look at the two Pentium II 400 MHz PCs reviewed here on PC Magazine. Dell has the highest performances and highest price among the reviewed PC makers. Compaq has next to last performance at medium price. Gateway got best buy.
I am not saying that this review will mean very much. It just confirms what Dell has been saying about their strategy and how they have succeeded in creating demands for their PCs at a higher price and profit so far, not to mention their enhanced reputation for quality in hardware and services. Remember Dell's official said that each time they have the latest products with the latest technologies and enhanced performance, the demands in their products "spike".

Compare the following, which one would you buy if you are not trying to buy low cost PCs because you are on a tight budget?

Review Dell's machine:
zdnet.com
Review for Compaq's machine:
zdnet.com
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