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


To: PCSS who wrote (84564)8/30/2000 5:39:57 PM
From: Elwood P. Dowd  Read Replies (1) | Respond to of 97611
 
Wednesday August 30, 4:51 pm Eastern Time

IBM to sell new data storage computer
with Compaq

NEW YORK, Aug 30 (Reuters) - International Business Machines
Corp. (NYSE:IBM - news), the world's largest computer maker, said
on Wednesday it will sell the first data storage product to come out
of a $1 billion alliance it has with Compaq Computer Corp. (NYSE:CPQ - news), the world's No. 1
personal computer maker.

The IBM Modular Storage Server, a low-cost storage device will be available on Sept. 29, starting at
$10,500 with a typical 200 gigabyte version selling for $70,000.

It was the first product to come out of an alliance announced on July 6. IBM and Compaq had said they
will develop interoperable storage products, hoping to gain market share within the high-margin storage
market currently dominated by EMC Corp. (NYSE:EMC - news)

The companies said at the time of the announcement they expected the joint-sales agreement to bring
``significant'' sales to both companies starting in the fourth quarter.

IBM also said it has completed training to its storage sales force, storage networking architects, and
many of its business partners, that will allow them to help customers use open storage networking
solutions using both IBM and Compaq products.

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Compaq Computer Corp (NYSE:



To: PCSS who wrote (84564)8/30/2000 5:43:04 PM
From: Salah Mohamed  Read Replies (1) | Respond to of 97611
 
Micheal ... Interesting Articles

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Dell cuts prices on some PC models
By Bloomberg News
August 30, 2000, 11:10 a.m. PT
ROUND ROCK, Texas--Dell Computer, the biggest direct seller of personal computers, said it cut prices for some desktop PCs used by businesses, schools and governments after its parts costs fell.
yahoo.cnet.com

Comment: It appears that DELL is getting hurt at the low end of commercial PC's. The reductions are only at the price range of the iPaq. I'm not buying what they are saying about passing on cheaper parts prices, if this is the case, price reductions would've covered a wider price range of commercial PC's.
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Compaq cutting the PC cord
Desktop leader seeking to diversify through a broad range of wireless, Internet hardware
By Carmen Nobel, eWEEK
August 28, 2000 12:00 AM ET
zdnet.com

From the article:

eWEEK: But the majority of Compaq's sales are still indirect sales.

Winkler: The majority of the market does buy through distributors and will for the foreseeable future. ... People who have painted themselves into a box, like Dell [Computer Corp.], I think, are going to be in trouble. ... Right now at Compaq, it's 30 percent direct to 70 percent indirect; that's going to change, but it won't cross 50 percent for a few years.

Comment: I thought all along that the market will always be a mix of direct and indirect sales, and at the end of the day the winner will be the one who got the right mix. I do believe that CPQ got it right.
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