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Technology Stocks : Compaq

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To: Elwood P. Dowd who wrote (48256)2/16/1999 6:49:00 AM
From: rupert1  Read Replies (1) of 97611
 
EP Quetions going on;'

Q Because of YK2 large accounts wll stop buying in July and medium will stop in 4th quarter - there will be a melt-down.

A. Lots of theories. Small medium business worldwide needs equipment to add on or to replace for YK2 together with what we think will be a very strong seasonal demand in second quarter. The lower costs of PC will fuel this. He is talkign about the "free PC" in Calfornia. 500,000 wanted the free PC (Presarios) even though there were only 10,000 available. Compaq sold these computers. He thinks this is a huge market for CPQ. Nothing is free. (Made a joke and got a laugh).

Q. Customer choice model - is it contradictory with channel network?

A. Complements the channel distribution. Digital and Tandem products need us to be flexible.
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