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Technology Stocks : Compaq
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To: jim kelley who wrote (29346)7/16/1998 6:33:00 PM
From: Don Edgerton  Read Replies (2) of 97611
 
I wondered the same thing. Then I saw a blurb on TV. CPQ uses subs (probably in Taiwan) to build its low end machines. Buyers such as Computer City send orders direct to contract builder who ships straight to buyer. Contractor maintains work in process inventory on his books. Entry on CPQ books is from time of shipment until time of delivery. CPQ bills the buyer and pays the builder. This is likely why the comment was specific to commercial models.

Anyone correct me if they believe otherwise.

Aloha
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