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

To: PCSS who wrote (91453)	6/4/2001 9:02:58 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

Capellas: Done with Price-wars by: skeptically 06/04/01 08:45 pm EDT Msg: 237824 of 237825 crn.com Capellas Says Compaq Done With Price Wars, Analyst Reports By Edward F. Moltzen, CRN New York 11:45 AM EST Mon., June 04, 2001 Compaq Computer has decided to stop taking aggressive pricing actions and "walk away" from deals where pricing is too low even as it continues to trim inventories, executives are now saying privately. In a report issued this morning, Merrill Lynch analysts say Compaq CEO Michael Capellas told them in a private meeting last week the PC maker is done with price cuts for now. "Capellas . . . said that Compaq's pricing actions are now largely complete and should be felt in the market within the next few weeks in their entirety," wrote Merrill Lynch analyst Steven Fortuna. "There are no additional pricing actions planned." Compaq executives,including Capellas ,had said publicly that they were working to reduce inventories to provide leverage for eventual price cuts. Compaq has been aggressive in courting solution providers in an effort to match rival Dell Computer on a case-by-case basis in cutting prices to win deals. That has now changed, Fortuna says, according to what top Compaq executives told him last week. "Compaq intends to walk away from unreasonably low pricing for commercial PCs, except in some strategic cases," Fortuna wrote. In addition, company executives said they could continue to bring in pricing premiums on notebook and handheld lines, largely due to technology differentiators. Compaq executives did not immediately respond to requests for comment. Posted as a reply to: Msg 237820 by skeptically