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Technology Stocks : DELL Bear Thread

DELL 118.45

-0.8%

12:53 PM EST

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To: Mitchell Ryan who wrote (1670)	8/25/1998 11:52:00 PM
From: rudedog	Read Replies (1) of 2578

Ryan - Are Compaq and HP really making any money is this segment? The answer in CPQ's case is apparently Yes - the consumer group GM (Rod Schrock) claimed that the $899 machines had the best margins of any consumer products, on the order of 23%. So it looks like CPQ can make as much margin on $899 machines as Dell makes on average for all of their products including servers and workstations. Of course Jim Kelley will tell you CPQ management is just blowing smoke. And Jim's been right before... but I have done other digging that also suggests CPQ is doing low 20%s margin on consumer products.

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