Compaq Message Board - Msg: 9127366

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Technology Stocks : Compaq

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To: Captain Jack who wrote (59824)	4/24/1999 11:02:00 PM
From: rupert1	Read Replies (3) of 97611

Thanks for your response. I don't know much about the comparable costs of computers. I agree that low cost is a major factor. It is my understanding that COMPAQ's ability to manufacture and sell low cost computers at a profit is one of the reasons it leads DELL and all other manufacturers of PCs. If COMPAQ has slipped due to higher costs arising from the DEC acquisition or from price competition from competitors, I am sure that its "traditional" skills have not deserted it. Rosen is clear about maintaining its dominant and profitable position in PCs. You are not proposing that DELL is catching up with COMPAQ in services or high end, are you? You said COMPAQ has been timid about laying off excess personnel. Yet it announced 17,000 to be laid off when it completed the DEC merger. It has done that except for about 1,500 who will be gone in a few months. The slower of the cuts were due to labour laws in Europe. Perhaps there should be additional lay-offs or perhaps redistribution of personnel to the more profitable divisions, such as services.

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