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

To: Kenya AA who wrote (66786)	8/19/1999 6:33:00 AM
From: marquis103	Read Replies (1) \| Respond to of 97611

Hey everyone. Did I miss something? Whatever happened to the big restructuring plan Capellas was supposed to present by the 15th. Haven't heard any mention of it. Doesn't look good to make that kind of statement then not produce. I thought we had a CEO that was going to be communicative and accessible. Not a good start. Russ

To: Kenya AA who wrote (66786)	8/19/1999 9:44:00 AM
From: rudedog	Read Replies (2) \| Respond to of 97611

K - MSD's statement is a lot better - he is simply saying "we're about even now, we're growing faster, that trend means CPQ won't catch us in US desktop sales" which is completely accurate given current trends. What this ignores is that DELL is likely to fall victim to the "Law of large numbers" and markets like US desktops where DELL has already achieved big share will see the effects first. DELL has programs in place to get some consumer share but so far those programs have not really gotten traction, so they will have to continue perfect execution in the commercial space to get and maintain a lead. Until we get the 3Q99 IDC numbers we won't know for sure if DELL has actually captured the US lead but it seems certain that they will get there, if not this quarter than next. Then the race will start in earnest as DELL tries to build business in the low-cost, low-margin segment where their business model does not really give them an advantage, and where they have been reluctant to compete.