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

To: Windseye who wrote (67216)	9/1/1999 8:06:00 PM
From: rudedog	Respond to of 97611

Doug - I understand what you are saying, but in the market where these particular products exist, CPQ is killing everyone else and doing it profitably. The areas where they are having problems are in Commercial desktops (a completely different business , and a different CPQ product group), and in some of the enterprise legacy lines. They continue to do well in the core server and storage business and in consumers. I believe they will fix the commercial business, although it may take until the end of the year to really get the distribution model to a point where they are competitive. As we speak, CPQ can deliver laptops in much less time than DELL can - with a screen shortage, CPQ's model happens to give them an advantage, at least until their pipeline dries up. A client of mine just did that exercise this morning - got a quote on 100 laptops from DELL with 15 to 20 day delivery, CPQ was 5 days. DELL of course has no pipeline, which in a component shortage is a liability. re: But I think Dell must be very competitive if it's creeping and crawling and about ready to surpass CPQ's retail sale market domination (at least the rate of growth). CPQ grew the consumer business 68% year over year and has more than 8 times DELL's share. DELL is just beginning their assault on the consumer space and they will find it tough sledding. The area where DELL is encroaching (and likely to win IMO) is the US corporate desktop market.