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Technology Stocks : Compaq
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To: BillHoo who wrote (33732)10/2/1998 6:07:00 PM
From: rudedog  Read Replies (1) of 97611
 
Bill
My understanding is that CPQ's consumer division has traditionally targeted a 20% GM but enjoys better net because of a simpler distribution model. Since they are in the enviable position of selling everything they make, they have not been under pressure to lower margins. I would assume that they would maintain targets on new products at whatever price point. In 1H98 the $899 machines were their most profitable even with the $100 rebate.
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