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Technology Stocks : Compaq

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To: Elwood P. Dowd who wrote (61204)5/12/1999 4:15:00 PM
From: rupert1  Read Replies (3) of 97611
 
El: You may have seen the interesting discussion on the Yahoo Club thread about COMPAQ selling coloured and stylish boxes, like the iMac, especially for young folk. I had contributed the suggestion that they have a designer line i.e. have a hip designer label attached to one or more of the models. She-X was collating all the ideas.

Like Apple, Compaq does not have a CEO, like Apple, COMPAQ has reduced the number of distributors, so why not, like, Apple, introduce some snazzy new coloured models.

The problem usually cited is the difficulty of maintaining inventory at all the points of sale, in all the colours. But the new DAP might help: let the 4 distributors and re-sellers worry about that. Alternatively, any new coloured model could be restricted either to Compaq.com or to other direct sellers on the internet, like those mentioned in your last post. Or it could also be restricted to a single partner, such as Radio Shack, who would have the floor space to show the models, and the supply and distribution skills to move stock around overnight.

It is important to capture the loyalty and affection of young consumers. Perhaps the coloured model could come with some free educational or games oriented software.

It wouldn't do any harm to jazz up COMPAQ's image and, at the same time, improve EPS.

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