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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (62623)	6/8/1999 6:51:00 PM
From: Captain Jack	Read Replies (1) \| Respond to of 97611

El--- NEW YORK, June 8 (Reuters) - Dell Computer Corp. <DELL.O>, the top direct personal computer supplier, widened its lead in the U.S. small business market in the first quarter, capturing 19.7 percent of PC shipments, the company said on Tuesday. Citing newly-published statistics from market research firm International Data Corp. (IDC) of Framingham, Mass., Dell said its 20 percent share of the U.S. small business market compares with a 14.2 percent share in the first quarter of 1998. The IDC report showed the Round Rock, Texas PC maker shipped nearly two times as many PCs as its nearest rival to U.S. small- and medium-size businesses -- defined as companies with fewer than 500 employees. The report shows Dell pulling into the undisputed No. 1 position for sales to small and medium-sized U.S. businesses, 15 years after founder Michael Dell sold his first PCs to local businesses from a University of Texas dormitory. No. 2-ranked International Business Machines Corp. <IBM.N> had a 10.7 percent share, up from 9.2 percent in the year-ago first quarter, according to IDC analyst John Brown. Compaq Computer Corp. <CPQ.N>, which a year ago ranked No. 1 in U.S. small business shipments, sank to No. 3 in the first quarter of 1999. Deliveries during the quarter slumped to 10 percent from 18.4 percent in the year-ago quarter, amid recent turmoil in the Houston company's business PC strategy. Paul Bell, senior vice president of Dell's Home and Small Business Group, said his company's accelerating growth rate benefited from the increasing attention Dell's rivals have given to efforts to compete with Dell's direct distribution. "As our major competitors have been talking more and more about direct sales, we are having a lot of small business people who weren't customers before contacting us," he said. Dell is eyeing sales to small and medium-size businesses as a key driver of future PC growth, offsetting maturing sales cycles to large corporations. Two-thirds of Dell revenues come from large corporate sales, with the remainder split between small business and consumer sales, a Dell executive said. Filling out the first-quarter rankings were Toshiba Corp. <6502.T>, the leading notebook PC maker, and Acer Group <2306.TW>, the Taiwanese PC maker -- neck and neck at No. 4 -- each with 5.5 percent each of the market, IDC said. Hewlett-Packard Co. <HWP.N> was next, with 5 percent of the small and medium-size business market. Most of the rest of the market is made up of so-called "white boxes" -- low-cost, no-brand-name PCs assembled by local resellers who profit by providing installation and service to small businesses who cannot afford dedicated technical staff. White box makers and smaller PC makers made up 31 percent of the market in the first quarter, IDC's Brown said. IDC counted shipments of 3.4 million PCs during the first quarter, which represented year-over-year growth of 11 percent in the U.S. small business PC market. By contrast, Dell's unit shipments for this segment grew 53 percent year-over-year, nearly five times the industry growth rate, Dell said. "This is going to be the next battleground for the major PC vendors," IDC PC analyst John Brown said of the PC market for small- and medium-sized businesses. "Sales to large companies are dominated by the top three -- Compaq, Dell and IBM -- small and medium business is where the other guys -- Toshiba, Gateway and Micron (Electronics) are trying to hang on," Brown said. Previously, another survey by market research firm ZD InfoBeads ranked Dell No. 1 in the small and medium business market, as well as the market-share leader in total PC shipments to U.S. businesses during the first quarter of 1999. Paul Bell, the Dell executive, attributed Dell's No. 1 share of the small business market to its reputation for solid products and services. He also credited the specialized sales and technical support teams and its Internet-based Premiere Pages program that allows businesses to receive training and place custom orders via the Web. Shares of major computer makers slumped at midday Tuesday, with Dell, down $1.37 at $34.44 in Nasdaq trading. Compaq was down $1 at $22.88 while IBM was off $2.44 at $117.94, both in composite U.S. stock market trading. <<"70% chance of the stock going to 18">> Do you believe that will be the bottom?

To: Elwood P. Dowd who wrote (62623)	6/8/1999 7:07:00 PM
From: P.M.Freedman	Read Replies (1) \| Respond to of 97611

I, not Kumar, said it might go as low as $18. The chance to be there is 70%.

To: Elwood P. Dowd who wrote (62623)	6/8/1999 9:55:00 PM
From: QuentR	Respond to of 97611

El, See post by Aitch Message 10031170