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Technology Stocks : Dell Technologies Inc.

DELL 127.90

-4.4%

3:59 PM EST

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To: Chuzzlewit who wrote (50903)	7/14/1998 8:45:00 AM
From: rudedog	Read Replies (3) of 176387

Chuz - Some confirmation on what I have been saying about margins in the low end of CPQ's consumer business - Rod Schrock says the $899 boxes are the most profitable consumer products. (If only the same were true about commercial desktops!!!) ______ 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.

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