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

To: tonyt who wrote (91080)	5/3/2001 1:29:39 PM
From: profile_14	Read Replies (3) \| Respond to of 97611

Who Wins the Price War? Well, it really depends on how long it lasts. The piggy bank will be big enough to endure this for a while, and the opportunity to make money will be dictated by those companies that can derive profits outside of that price war. So if the recovery occurs by the end of the year, enterprise systems will contribute more to Compaq than they might to Dell by a long shot. If this goes on for another 2 years, Dell wins unless Compaq becomes as lean as Dell. If the economy recovers and Compaq maintains those low prices, then Dell will be the king of a zero margin business and its stock will plummet. JMHO. To me, it is a question of who loses less, not who wins. Dell has gone from singing the earnings game, to having flat earnings and singing the revenue growth game, to having flat revenues and now singing the market share growth game. Well, the rubber is about to hit the road. What else is left? Services, storage, and enterprise systems should carry Compaq forward while spoiling the party more for Dell in the long term than for Compaq, IMO. Best regards,