Barry and thread,
Interesting article re. CPQ and the sub-1Ks -- a subject of much debate on the Intel thread:
______
Tuesday July 14, 4:04 am Eastern Time
Compaq's cheapest consumer PC most profitable -WSJ
NEW YORK, July 14 (Reuters) - Compaq Computer Corp.'s (CPQ - news) cheapest computer is now its most profitable consumer personal computer, the Wall Street Journal reported Tuesday.
Accelerating sales and a sharp drop in costs pushed the margin on Compaq's $899 computer, which is also its biggest seller, above its more expensive consumer PCs, Rod Schrock, vice president of Compaq's consumer division told the newspaper.
''The big misconception is we make a lower gross margin in the sub-$1,000 market,'' Schrock said. ''For the consumer business, those are the most profitable desktops.''
Schrock said the low-cost system took off this spring as huge sales and tight inventory controls allowed Houston-based Compaq to spend less on price guarantees to stores.
He said Compaq is paying 42 percent less for home PC components now than it was a year ago, the paper reported.
Ibexx
|
