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

To: John Koligman who wrote (91086)	5/3/2001 2:07:53 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

John - these workstations are really super-PCs and so I think the PC economics apply. At the very low end of the server chain, PC economics also apply, but moing even slightly upstream the inventory model and delivery mechanisms between CPQ and DELL are essentially identical. I am reluctant to consider a server review from PC magazine as definitive - their idea of specs are speeds and feeds, which don't tell the whole story on servers. But my point was really around cost, not features. I think CPQ was just maintianing higher margins - and as the last Q showed, the "brand" was not sufficient to pull against DELL's low pricing. But your point reinforces mine - DELL is selling servers at PC margins, so they can not use server revenue as an ofset to low PC profits.