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Technology Stocks : Compaq

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To: Lynn who wrote (59992)4/28/1999 11:49:00 AM
From: JSI  Read Replies (2) of 97611
 
Lynn,

There backordered for a simple reason. PII 300's are no longer in the channel. Compaq buys direct from Intel. Intel is no longer supplying the PII 300's. So, Compaq must buy from franchised such as Arrow, Marshal, Avnet, Pioneer, etc. These companies don't really have access to them either, because they are given their allocations from the manufacturer as well.

So, Compaq in order to build this product would have to buy their CPUs from the open market at a premium price. A price that while still low, would chop up enough margin to make it unprofitable to sell the machine at today's low price.

JSI
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