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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: kemble s. matter who wrote (155813)	3/31/2000 4:39:00 PM
From: rudedog	Read Replies (2) \| Respond to of 176387

Kemble - CPQ never tried direct in any serious way as far as I know - they were too afraid of alienating the channel. But it does not matter if they succeed or fail in that effort - what matters is that they stop losing money in PCs, by getting out of the business if necessary. To put it in perspective, most on this thread, myself included, regard DELL as a pretty efficient company with the best financial model in the business. Yet CPQ's enterprise group, taken by itself, had nearly TWICE the operating income of ALL of DELL in 1999, which was hardly a great year for CPQ. If it were not for the huge losses in the commercial PC division, CPQ would have had a great year... their enterprise numbers look better than SUNW's, and we know what happened to SUNW shares. So you can see why I say that I am not too worried about how CPQ solves the PC problem as long as they solve it - they don't need the revenue and they sure don't need the losses. I have been saying for 2 years now that CPQ and DELL are moving in different directions, and the results should be good for both DELL and CPQ.