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Technology Stocks : Intel Corporation (INTC)
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To: Scumbria who wrote (78443)4/11/1999 11:43:00 PM
From: L. Adam Latham  Read Replies (3) of 186894
 
Scumbria:

Re: Compaq specifically said that their shortfall was due to their commercial PC business, which is 100% Intel based.

The Wall Street Journal seems to disagree with your conclusions, and implies that part of Compaq's problems is with declining sales of non-Intel (I assume) based minicomputers:

interactive.wsj.com

"The profit woes suggest sales of big computers acquired through the acquisitions of Digital Equipment and Tandem Computers continue to fall, analysts say. Sales of the high-priced machines, which carry gross margins at least double that of PCs, aren't salvaging the PC margins drop. Compaq's product gross margin is expected to be about 22.5% for the quarter, similar to Dell and Gateway Inc., which don't offer minicomputers."

Adam
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