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

To: hlpinout who wrote (89736)	2/17/2001 8:42:39 PM
From: MeDroogies	Respond to of 97611

"DELL: Well, I think if you look at our competitors, what you find this is particularly true in the case of Compaq is that their profits are localized in the high end of their business, the server business. In the fourth quarter, our server units increased 63 percent. We far outpaced Compaq's growth in the only area of their business where they have a profit. If they were to, let's say, try to compete with Dell in the other part of their business, the client products, they would have to, you know, essentially incur substantial losses. Our cost structure is far lower than theirs in that sector of the business, and, of course, we're all the time working to continue to refine it. " 2 things....Considering CPQ is so far ahead of Dell in this field, his hubris about growth is misguided. I can go from 10 sales to 16 and say my growth outpaced CPQ's. Doesn't mean squat. Also, when you consider how rapidly CPQ has grown recently in this area, it's no surprise that their cost structure is higher. DELL's will increase over the next 6-12 months, as well, with 63% growth.