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Technology Stocks : Compaq

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To: KELLIS who wrote (28250)6/26/1998 10:20:00 AM
From: Lynn  Read Replies (6) of 97611
 
Back to Compaq... Last night I went to CompUSA only because it was on my way to another store. I have needs for a notebook as well as a new desktop so I wanted to see what they had. The outcome of my visit is an assumption on my part that CPQ would sell more higher end PCs if consumers knew they existed, that they have choices other than Proliants. Here's what happened:

I asked one of the sales people where they displayed their Deskpros and was told they didn't sell higher end Compaqs to the public, only to corporate buyers. A family group standing near me heard the discussion and seemed surprised that Compaq made models of PCs other than what CompUSA had on the shelves. The father/husband wanted to know about non-Proliant options. The sales person turned to him and said he could not buy one. I, at this point, said this was ridiculous. The sales person called in another sales guy for back-up. After being updated on the discussion, sales person #2 told me and the father/husband that if we telephoned Compaq directly, they _might_ agree to sell us a PC normally *only* sold to business/corporate buyers.

On my way out I tried asking the employee behind a desk near the entrance about buying a higher-end Compaq from CompUSA. He gave me the same speech as the two sales people, making me think CompUSA has zero interest in stocking/selling higer end Compaqs to the public so they have created the illusion that what they shelve is what Compaq makes.

People, after one frustrating evening at one CompUSA in New England I am of the opinion that CPQ could higher margin PCs to the public if the public knew they had non-Proliant options.

Regarding notebooks, earlier on the phone I had been told all they had was one IBM [my posting #28237]. For Pentium IIs, this was correct, but there was one Compaq MMX. The sales person for this said IBMs were, "Pure crap." He said they required a lot of servicing. He said Compaq was coming out with new models and to hold off until they started to come in. Then he told me if I wanted a really good notebook, to skip Compaq and buy a Dell. He said Dell laptops blew-away everyone else's and that he was sorry Dell only sold mail order any more.

So, my first actual visit to CompUSA since '93 or '94 made me, a CPQ shareholder, coming away with the view that CompUSA is no friend of CPQ.

Lynn
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